American Express (Amex) recently announced new business-to-business B2B services for construction industry merchants. The major player in business payments is joining forces with several B2B companies such as Billd, BILT, and Levelset. With these strategic partnerships, Amex aims to tackle common challenges in the industry by offering better financial solutions, simplifying payment processes, and expanding access to a wide range of resources. The collaboration is expected to provide tools that help manage expenses and improve cash flow in sectors that often encounter financial obstacles.
Each partner offers discounts on services and solutions for eligible merchants who accept American Express or their qualifying customers. Construction businesses could lower their financial risks with new payment options and credit facilities. Introducing these resources might also boost growth among smaller contractors who usually face difficulties securing financing. These organizations hope their joint efforts will support individual businesses and contribute to a more stable construction market.
Key Takeaways
- Enhanced Financial Solutions for Construction Merchants: American Express’s partnership with Billd offers contractors extended payment terms of up to 120 days, enabling better cash flow management and reducing financial risks. These financing options address a critical challenge in the construction industry—managing erratic payment timelines.
- Streamlined Payment Processes: Collaboration with Levelset simplifies lien rights management by automating document exchanges and payment workflows. This reduces manual inefficiencies, lowers lien risks, and ensures more predictable and timely payments for merchants and contractors.
- Innovative Worker Training Solutions: Through its partnership with BILT, American Express supports merchants by offering discounts on interactive 3D-guided training tools. These tools improve installation accuracy, reduce task time, and enhance workforce efficiency, addressing skill gaps in the construction sector.
- Strategic Support for Industry Growth: By integrating advanced tools and resources into construction operations, these partnerships aim to reduce administrative burdens, empower businesses to secure more significant projects, and foster long-term growth for small and mid-sized contractors.
American Express B2B Services For Construction Industry Strengthens Strategic Partnerships with Billd, BILT, and Levelset
In the construction industry, efficiency and smooth operational flow are paramount. American Express recognizes these needs and has been on a strategic plan to enhance support for construction merchants through collaborations with a suite of B2B partners with established payment companies like Billd, BILT, and Levelset. Each company has developed a renowned platform that leverages technology to ensure contractors and subcontractors receive prompt payments, a crucial service in an industry where delays can significantly hinder project schedules.
Meanwhile, with its long-standing expertise in financial management, American Express aims to enhance this support by collaborating to develop a comprehensive system for those in the construction sector.
The construction industry faces many operational challenges, compounded by outdated processes and a shortage of skilled labor. Complex financial transactions, including large-scale purchases, extended project timelines, and intricate supply chains, characterize the construction industry. Managing cash flow, securing financing, and ensuring timely payments are critical challenges that construction merchants face daily.
The challenges often manifest in complex document management, unpredictable cash flow due to delayed payments, and difficulties in finding and training skilled workers adept at using modern technologies.
One of the primary issues plaguing the construction industry is the complicated and slow payment process. Many companies operate with a delayed payment structure that significantly stretches the cash flow, sometimes taking as long as 94 days to settle payments. This delay hampers operational efficiency and imposes financial burdens on contractors, who must often front the costs of labor and materials.​
Manual workflows compound these issues, leading to slow payments and limited terms that force contractors to shoulder labor and material costs upfront. At the same time, finding skilled labor has become increasingly complex, prompting companies to invest in training programs. However, traditional training materials often fail to resonate with digital-native workers, limiting their effectiveness.
Recognizing these unique needs, American Express collaborates with innovative solution providers to bring modern tools and resources to the construction sector. These solutions include advanced process automation tools designed for commercial contractors and building material suppliers, simplifying operations and supporting more predictable cash flow. Additionally, new training solutions aim to engage and upskill technicians more effectively, helping construction firms build a more competent workforce.
These tools are intended to streamline operations and stabilize cash flow, making financial operations more predictable. Their offerings include tools like Buyer Initiated Payments (BIP) and AP Automation, designed to integrate seamlessly with existing accounts payable systems, facilitating quicker payment cycles and reducing the reliance on manual, error-prone processes.
While the specific details of the new partnerships have not been fully disclosed, American Express has a history of collaborating with various financial technology companies to enhance its offerings. For instance, Amex’s acquisition of Kabbage has enabled the provision of flexible lines of credit to small businesses, including those in construction. Kabbage Funding from American Express allows eligible small business customers to apply for lines of credit ranging from $2,000 to $250,000, providing flexible access to funds when needed.
With these partnerships, construction merchants can expect the following:
- Enhanced Financing Options:
Addressing a critical challenge in construction, Billd, a financial services leader in the industry, provides a solution for contractors’ working capital and procurement needs. Through its partnership with American Express, Billd offers commercial contractors extended payment terms of up to 120 days on eligible materials purchases.
Eligible American Express-accepting merchants can refer their contractor customers to Billd, enabling them to access these benefits. This collaboration ensures merchants receive timely payments while offering contractors a reliable financial tool to manage their cash flow.
Chris Doyle, the Chief Executive Officer of Billd, expressed enthusiasm about joining forces with American Express. This partnership aims to provide commercial contractors with accessible material financing. This collaborative venture will enable merchants to secure prompt payments and offer contractors the necessary working capital to manage the erratic payment timelines typical in the construction sector.
- Innovative Training & Implementation Solutions:
Training workers efficiently and accurately is another critical aspect of construction management, and BILT Incorporated is revolutionizing this process. The creators of the 3D BILT platform provide interactive, 3D-guided instructions with voice, text, and animated guidance to help contractors minimize installation errors and reduce time on tasks. Eligible merchants accepting American Express can benefit from discounts on production costs for these innovative training tools.
Nate Henderson, President & CEO of BILT, stated that their collaboration with American Express focuses on providing merchants with the tools to directly offer digital training to construction workers. 3D-guided work instructions aim to decrease installation errors, reduce time spent on tasks, and minimize the need for follow-up calls.
- Streamlined Payment Processes:
Managing lien rights and payments in the construction industry has long been challenging, often burdened by manual processes and inefficiencies. To address this, Levelset, a Procore company, offers a cutting-edge solution for merchants. As a leading construction software platform, Levelset streamlines lien rights management by organizing documents across the payment chain, eliminating a significant pain point in the industry.
For eligible merchants accepting American Express, the collaboration brings cost-saving opportunities in lien rights management. It helps merchants manage payment processes more smoothly by automating the exchange of waivers and preliminary notices, significantly reducing lien risks and the hassle associated with manual document handling. The Procore integration allows general contractors to automate waiver requests and collection processes, making the management of compliance workflows easier and enhancing visibility into project participants​.
Ryan Beason, the Head of Sales at Procore’s Levelset, announced their partnership with American Express, which aims to enhance the capabilities of financial leaders in the construction sector. This initiative focuses on simplifying the management of lien rights and automating reminders for payment escalations, allowing merchants to concentrate on expansion and their core activities — constructing tomorrow. This collaboration reflects their mutual commitment to equipping suppliers, equipment lessors, and contractors with the necessary tools and resources for success.
Together, these partnerships with Billd, BILT, and Levelset supported by American Express, showcase a united effort to address key challenges in construction management — ensuring smooth operations, improved financial solutions, and efficient worker training, all aimed at empowering merchants and contractors to focus on building the future.
R.J. Ancona, VP and GM of B2B Products, Partnership & Client Management, and Merchant Services at American Express, noted that the construction sector is crucial in bolstering various industries and communities.
He highlighted that the sector is navigating distinct challenges requiring innovative responses. American Express is enhancing its support to construction merchants with B2B payment solutions and has introduced referral partnerships to mitigate industry-specific difficulties. These initiatives help construction companies optimize operations, pursue expansion, and sustain robust, dependable connections throughout the supply chain.
Introducing these partnerships signifies American Express’s commitment to address the specific challenges construction merchants face. With streamlined payment and financing solutions, merchants can reduce administrative burdens and focus more on core business activities. It will also encourage enhanced competitiveness as access to flexible financing and business insights can empower merchants to bid on larger projects and expand their market presence.
About American Express
American Express Company, along with its subsidiaries, is a comprehensive payments company. It provides credit card products, along with travel-related services. It is divided into several segments: Global Commercial Services, Global Consumer Services Group, Global Merchant and Network Services, and Corporate & Other. The company offers a range of products and services, such as credit and charge cards, banking, other payment and financing options, network services, expense management tools, and travel and lifestyle services. It provides merchant acquisition, servicing, processing, and settlement services, marketing at the point of sale, and fraud prevention. Additionally, it manages customer loyalty programs and operates airport lounges under the Centurion Lounge brand.
American Express markets its products and services to individual consumers, small businesses, and large corporations using mobile and online applications, referrals, affiliate marketing, direct mail, third-party providers, in-house teams, telephone sales, and advertising. Founded by Henry Wells, William G. Fargo, and John Warren Butterfield on March 28, 1850, American Express is headquartered in New York, NY.
About Billd
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Billd is a pioneering financial services firm based in Austin, Texas, established in 2018 by Christopher Doyle and Jesse Weissburg. The company focuses on resolving the cash flow challenges commonly faced in the construction industry by providing tailored financing solutions. Billd empowers subcontractors by offering project-based financing, allowing them to purchase materials upfront and manage payments over time, aligning with the construction industry’s unique financial cycles. This approach helps subcontractors maintain liquidity and stability through more predictable cash flow, supporting their operational and business growth needs.
Billd has raised $90 million through various funding rounds to support its mission, underscoring its commitment to transforming financial access and management for subcontractors. The firm operates with a deep understanding of the construction sector’s nuances, positioning itself as more than just a financier but a client partner.
About BILT
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BILT, established in 2012 and based in Grapevine, Texas, has developed a customer experience platform known for its innovative approach to user instruction via 3D interactive guides. These guides are enhanced with voice and text support, fundamentally changing how users interact with a variety of products. BILT’s technology makes complex assembly, installation, and setup processes more straightforward and intuitive, which is especially valuable in retail and government sectors where clarity and efficiency are crucial.
The company has garnered attention for its pioneering solutions, securing $10.8 million in funding to advance its technology and expand its reach. BILT’s dedication to improving the user experience is reflected in its substantial growth and recognition in the industry, making it a notable player in the tech and customer service landscapes.
About Levelset
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Levelset, now a subsidiary of Procore, specializes in enhancing payment processes in the construction industry through a robust platform designed to manage lien rights and streamline job-related financial transactions. Established in 2007 and based in New Orleans, Louisiana, Levelset mitigates risk and enhances the visibility of payment workflows, aiding contractors, suppliers, and other stakeholders in ensuring timely compensation.
With features like job research and risk intelligence, the company supports construction projects by providing critical tools to navigate the complexities of project payments. Levelset’s platform has been instrumental in the smooth operation and financial management of numerous construction projects, maintaining a strong focus on construction finance’s legal and procedural aspects.
Conclusion
American Express’s strategic partnerships with Billd, BILT, and Levelset highlight its commitment to addressing critical challenges construction merchants face.
By offering advanced financial tools, streamlined payment processes, and innovative training solutions, these collaborations provide construction businesses with the resources to enhance efficiency, manage cash flow, and upskill their workforce. These initiatives reinforce American Express’s dedication to empowering merchants and contractors, enabling them to overcome industry-specific hurdles and focus on driving growth and building the future.
