How Slow Payments Disrupt the Construction Industry
“Pay when paid”, the construction industry’s unofficial motto. Money doesn’t move unless money is received, and that’s the bottom line. And as you can imagine, it gets even more complicated when money isn’t moving fast enough.
Did you know it typically takes on average, 51 days for a contractor to receive money? These painfully lengthy payment cycles all come down to the manual processes verifying proof of work; you cannot pay something if it isn’t clear if it has been completed or not. The process of verifying and approving work is a very sequential and event-based process which slows down the payments ecosystem.
Slow payments and high working capital bleed contractors dry because payment cycles are so slow, and these companies end up taking bad financing terms like invoice factoring. This is where Harbr steps in and provides alternate financing options, providing fast cash on approved work. Instead of waiting for an event to happen, Harbr automates the process as data comes in. As field data is being reported, invoices and progress claims are being created and maintained automatically. This gets put in front of the approval chain in real-time.
Our goal isn’t just faster payouts, We’re on a path to be the #1 alternative financing partner for fair working capital to contractors.
Harbr is now accepting new beta partners. We invite you to explore our alternate financing model.
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