Constrafor, a construction procurement company, goes ‘SAFE’ route with new capital
Summary
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. Its Early Pay Program assumes the risk for the subcontractor invoice, freeing up cash flow and reliance on traditional and costly lending options. Ghauche admits that the company had a hiccup on revenue during this time, but that it didnt have anything to do with the credit market or network. Since then, the company tweaked its credit origination and is now growing at 25% month over month this year in sustainable growth.Constrafor also joined in on the AI trend by launching some initiatives using embedded generative AI related to automating manual reviews, for example, of insurance. Ghauche intends to get its EarlyPay program rated and open up Constrafors APIs to general contractor customers.Were seeing quite a bit of construction startups coming up now, and we feel we have a pretty large network right now, so we want to open up our platform for these companies to connect to ours and build on top of Constrafor, Ghauche said.