Large construction projects take a long time to finish, and subcontractors can get caught up in the flow of money, waiting up to 80 days to be paid by general contractors. Such situations not only lead to project delays but also impose the burden of financing their project segments onto subcontractors. However, Constrafor has set out to change this through its SaaS construction procurement platform.
It streamlines information and documentation for how general contractors work with subcontractors and assumes the risk for the subcontractor invoice, freeing up cash flow. The general contractor then reimburses Constrafor for the invoice; its revenue is based on taking in about 2% of the value of the invoice.
Given that construction companies typically allocate less than 1.5% of their revenue to technology investments, Constrafor find itself in substantial demand, It stands out by offering tailored solutions, designed and developed on behalf of these companies. Bolstered by recent funding, secured through a SAFE note, Constrafor is poised to elevate its operations, effectively facilitating crucial functions like payroll management and other pivotal aspects of the construction process.
Freddie
Company Specialist at Welcome to the Jungle