Carson Overcomes Retainage Delays and Unlocks Growth with Constrafor

The Challenge

Despite its strong foundation, Carson Corporation, like many construction companies, encounters persistent cash flow challenges. Retainage holds back a significant portion of earnings, and change orders can take up to 90 days to process as they cycle between Carson, general contractors, and project owners. “We're putting the money out up front and then it's taking five to six months to actually hit our bank account,” explains Chris Simpson, Vice President of Carson Corporation, highlighting the financial strain caused by delayed payments.

"We're putting the money out up front and then it's taking five to six months to actually hit our bank account." -Chris Simpson

Meanwhile, vendors and suppliers have tightened payment terms with many expecting full payment within 30 days—an added strain while juggling weekly obligations like payroll, benefits, and fuel expenses. “A lot of vendors after COVID aren’t letting material suppliers extend payables past 30 days. So they’re looking to be paid on the work before we’re paid on the work,” Chris notes. This financial strain puts pressure on supplier relationships and makes it difficult to maintain a predictable cash flow.

The recent financial landscape has further complicated access to traditional financing. Banks have tightened lending requirements, making lines of credit harder to secure, and rising interest rates made borrowing more expensive. With fewer financing options available, Carson needed a funding solution that offered flexibility, reliability, and immediate access to growth capital.

The Solution

Carson Corporation sought a financing solution that would allow them to manage cash flow effectively while avoiding the burdens of traditional lending. Constrafor’s Early Pay Program stood out as a cost-effective option, offering flexible access to capital at a time when borrowing costs were rising. By utilizing EPP, Carson could accelerate invoice payments without adding debt, making it an attractive alternative to conventional lending.

The onboarding process was seamless, and Carson quickly integrated EPP into their financial operations. "Ultimately, it's been very easy," says Chris. "All of our Early Pays have been through Textura, which makes the process transparent. We can see when a requisition is approved and track the funding history." This level of visibility provided Carson with confidence in their financial planning and cash flow management.

“Instead of having to really push hard at the end of projects to chase retainage, the Early Pay Program gives us some breathing room." - Chris Simpson

Beyond immediate cash flow relief, EPP has helped Carson take a more strategic approach to long-term financial management and relationship building with General Contractors. “Instead of having to really push hard at the end of projects to chase retainage, the Early Pay Program gives us some breathing room,” Chris explains. “It lets us be a little more flexible with clients, which helps keep the relationship positive and makes them more likely to want to work with us again.” This proactive approach ensures that Carson can navigate potential delays without any disruption to operations.

The Results

With Constrafor’s Early Pay Program, Carson not only stabilized its cash flow but also strengthened relationships across its network. By accessing capital when needed, Carson can pay vendors faster—securing better terms and discounts that help offset the cost of Early Pay. "My goal is to use Constrafor’s Early Pay Program not just for internal cash flow but to pay vendors sooner and negotiate discounts," shares Chris. "That’s a win for both sides."

Beyond financial flexibility, Early Pay has given Carson the ability to plan ahead with confidence. Instead of focusing on chasing payments, the company can focus on delivering high-quality work, maintaining strong client relationships, and driving long-term growth.

As Carson continues to expand, maintaining a predictable and proactive cash flow strategy remains critical. “We’re in a growth period right now. Despite challenges from other divisions, we’ve been expanding and becoming more profitable. This year, we already have our annual revenue goal backlogged,” Chris notes. With the ability to bridge cash flow gaps, Carson is better positioned to manage risk, take on larger projects, and ensure stability even in uncertain market conditions.

Looking Ahead

"It's construction—what's a guarantee today is not tomorrow." -Chris Simpson

For Carson Corporation, EPP is more than a financial tool—it’s a strategic advantage in an unpredictable industry. With shifting project timelines and delayed payments, maintaining cash flow is critical to staying ahead of challenges before they become roadblocks. As Chris puts it, “The goal is to stay ahead of those periods, to not be where one invoice shakes up payables.” Because, as Chris reminds us, “It's construction—what's a guarantee today is not tomorrow.”