Story Time: A Roofer's Journey Part 2, the Cash Flow Crunch
August 9, 2023

Story Time: A Roofer's Journey Part 2, the Cash Flow Crunch

Matt Fruge
Matt Fruge
Founder and CEO
In our last blog, I introduced you to Bob—the fictional founder of a brand new roofing company. You may remember that Bob had come to the painful realization that while he knew a lot about roofing, running a business was a whole different ball game.

In fact, when it comes to cash flow, Bob is f*cked. And you might be, too. 

I can’t tell you how many people I’ve seen start a roofing business, have a little success, and then get absolutely crushed by cash flow problems. So today’s blog is all about cash flow—what it is, why it matters, and how you can manage it better. I made a video about it that you should check out, too.

So, what is cash flow? 

First things first—cash flow is not revenue, and it’s not profit. It’s simply the movement of money in and out of your business. That distinction matters, because you can make a ton of sales and be profitable on paper, and still have crippling cash flow issues that make you wish 

you’d never set foot on a roof in your life. (Ask me how I know!)

Typically, businesses generate cash in three ways—operations, investments, and financing. I won’t go into investments today, but if you own a bunch of real estate … congrats!

Our other two cash flow levers are closely connected, because there generally comes a point in your growth at which your cash from operations just can’t cover your expenses, and you need to look at financing options. 

Supplier lines of credit to the rescue? 

Trust me, I’ve seen this movie. You pull up with a trailer, they load you up with materials and off you go without handing over a dime. 🚨DANGER! 🚨Supplier lines of credit can be incredibly risky. For one thing, it can be easy to rack up significant amounts of debt. And when the money coming into your business is crippled by slow insurance payments, paying it back becomes a huge problem. Oh, and remember, we’re talking about materials. A merchant line of credit isn’t much help on the 15th and 30th when everybody—and I mean everybody—wants to get paid. 

OK, so what’s the answer?

There’s no magic bullet for managing cash flow effectively. It may sound obvious, but running a tight ship goes a long way. Scheduling projects effectively, coordinating subs to avoid lost time, and taking charge of how and when you collect from homeowners can all make a difference. I talk more about operations in that video I mentioned.

But unless roofing’s a hobby and you do a few jobs a month, at some point you’re going to need help with cash flow. It’s just the nature of a business that involves significant up-front costs and delayed payments

That’s why I created SquareDash. 

We front you the ACV at the beginning of the job, and send you the depreciation as soon as the job is complete. All you need is an approved claim. How long it takes for the insurance company to get around to paying? Not your problem! 

You can email me with questions or to schedule a demo of our platform. And, feel free to connect with me on LinkedIn, and follow us on Facebook, Instagram, and YouTube for more ways to run your business better.  

About SquareDash

SquareDash is a veteran-owned financial services company based in Dallas, Texas. Our proprietary fintech platform is solving the cash flow crisis for contractors around the U.S. who deal with insurance claims. Learn more at

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