More construction projects are being started, but payments to contractors and their subcontractors continue to cause a bottleneck in the normal course of completing a project.
“Banks are more and more careful with their own funding of development projects, which means they will also slow down payments on their own side,” Constrafor CEO Anwar Ghauche told TechCrunch. “What this means is that payment timing to subcontractors are extending instead of shrinking, only getting more difficult for subcontractors because they don’t usually have recourse to go to their banks and grow their line of credit.”
Ghauche and Douglas Reed started Constrafor, a SaaS construction procurement platform, to provide embedded financing and software for general contractors to manage their subcontractor workflow. Its Early Pay Program assumes the risk for the subcontractor invoice, freeing up cash flow and reliance on tr...
