Rule 144a

Short-term loans that convert into equity if not repaid by a set date. Subcontractors may encounter these when seeking growth capital to fund equipment or crew expansion. They carry risk: lenders can become part-owners of your company.

A funding structure where a specific project secures its own debt and equity, separate from the sponsor's balance sheet. For subcontractors, payment depends heavily on the project's cash flow rather than the owner's overall finances. This increases payment risk, making it critical to review contract terms and security provisions carefully.

A centralised system used by operators to consolidate and process contractor timesheets, work records, and billing entries. Subcontractors submit field data through CAPE to trigger payment and compliance verification. Accurate, timely entries are critical to avoiding payment delays.

Revenue that is earned but never collected due to operational inefficiencies. Common causes include lost field tickets, unbilled equipment hours, forgotten third-party charges, and documentation errors. Industry estimates suggest 1-5% of revenue is lost to leakage in paper-based operations.

A reduced invoice amount offered to prime contractors or clients who pay before the standard due date. Common terms like 2/10 Net 30 mean a 2% discount if paid within 10 days. Subcontractors must weigh the cash-flow benefit against the revenue they give up.

A contract clause allowing the hiring company to end a service agreement before the scheduled completion date. Subcontractors may receive a penalty payment, but it is rarely full contract value. Always clarify demobilisation costs and notice periods before signing.

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