Since bitcoin’s first appearance and push into the mainstream, numerous discussions have arisen about how bitcoin and other cryptocurrencies will affect the global economy. For example, the central bank of France has recently released a report that highlights ways in which bitcoin is revolutionizing financial transactions within the construction industry.
The report was produced by Bruno Biais, head of economic analysis at the bank, and Cyril Durand. The two researchers found that blockchain-based cryptocurrencies are already impacting the construction industry through intelligent contracts.
Construction contracting has huge income potential. Government infrastructure projects are most lucrative especially when the contractor lands many projects. Getting those projects off the ground, however, is a different story. That is because, like all businesses, construction contractors take a huge risk by funding their projects using cash from their reserves.
Financing is the key. Taking outconstruction loans for business keeps the cash within the company as well as preserves cash flow by stretching out payment terms. The construction financing industry also happens to be very diverse in its offerings.
Contractors can take out any of these 7 types of financing to fund their new projects and keep up with contractual obligations.