What is Credit?

In the context of construction, credit refers to the financial arrangement where a contractor or subcontractor is allowed to purchase materials or services on account with the promise to pay for them at a later date. This is a common practice in the construction industry, as projects often require a significant amount of upfront capital for materials, labor, and equipment. By extending credit to contractors, suppliers and vendors are able to maintain a steady flow of business and build long-term relationships with their clients.Credit in construction also plays a crucial role in managing cash flow and ensuring the timely completion of projects. Contractors often rely on credit to cover unexpected expenses or delays that may arise during the construction process. Additionally, credit can help contractors secure larger projects that require a significant investment upfront, allowing