The Challenge
Utility Network Solutions (UNS), a premier utilities contractor, was rapidly expanding through significant projects with high-profile clients such as Google and Spectrum. This accelerated growth, however, exposed a critical vulnerability; the financial stability of their subcontractor partners.
As project scales increased, prolonged payment cycles inherent to the construction industry created cash flow pressures for UNS's trusted subcontractors. These financial constraints heightened risks including potential project delays, increased administrative overhead, and challenges in retaining reliable, quality-focused trade partners. Recognizing these risks, UNS understood that managing subcontractor cash flow was crucial to achieving sustained growth.
The Solution
Seeking a financial partner well-versed in construction industry challenges, UNS selected Constrafor’s General Contractor-Led Early Pay Program. This strategic solution empowered UNS to proactively support their subcontractors by offering accelerated payments on approved invoices within 24 hours, significantly improving subcontractor liquidity.
Unlike traditional financing options, Constrafor’s Early Pay Program was flexible and obligation-free, directly addressing subcontractor cash flow needs.
Angela Mcilvain, CFO of UNS, noted, "Choosing Constrafor was driven by their deep understanding of our unique business needs and commitment to personalized service. Their Early Pay Program has enabled us to confidently take on more projects and manage our finances effectively."
The Results
The Constrafor partnership dramatically improved financial predictability and operational efficiency for UNS. By providing reliable access to capital for subcontractors, the Early Pay Program eliminated cash flow bottlenecks, ensuring smoother and more predictable project execution.
With consistent financial support for three key subcontractors, UNS successfully scaled its operations, securing additional projects and expanding into new markets. This financial empowerment directly contributed to UNS achieving annual revenue of $100 million, significantly surpassing their previous $25 million benchmark.
Angela Mcilvain summarized, "The personalized attention and strategic support from Constrafor sets them apart. Their solution has been pivotal in enabling our growth and capacity to undertake larger, more ambitious projects."
