How Sanitary Construction Transformed its Business with Constrafor's Early Pay Program

Industry

Subcontractor

Challenge

Sanitary Construction Company navigated the common industry challenge of extended client payment terms, which impacted their cash flow for vendor payments and payroll. This prompted the need for a solution that could provide quicker access to working capital without incurring additional debt.

Results

By leveraging Constrafor's Early Pay Program, Sanitary Construction Company was able to maintain a zero balance on their credit line for most of the year, significantly improve vendor relationships through prompt payments, manage payroll and union benefits efficiently, and secure better terms and lower bids from suppliers.

Key Product

Early Pay Program

sanitaryconstruction.com/

Credit Line Balance

10 day

Vendor Payment Time

1 week

Union Benefits Payment

$5M

Credit Limit Increase

The Early Pay Program has been a game-changer for us. We have barely used our credit line and maintained a zero balance for most of the year. This has given us the financial flexibility to manage our operations better.

William Wyatt

CFO at Sanitary Construction Company

With Constrafor's Early Pay Program, we can pay our vendors quickly, which has strengthened our relationships and even helped us secure better terms. The cash flow improvement has been invaluable.

William Wyatt

CFO at Sanitary Construction Company

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About Sanitary Construction

Sanitary Construction Company is a leading construction firm in the United States, specializing in high-quality site development construction projects. With over 135 continuous years in business over 5 generations, Sanitary Construction is known for their commitment to excellence and timely project completion, they have built a strong reputation as an industry leader.

The Challenge

Navigating extended payment cycles is a standard aspect of the construction industry. For a leading firm like Sanitary Construction Company, known for its commitment to excellence, managing this required a forward-thinking approach. The timing of payments occasionally impacted their cash flow, creating a need to bridge the gap for vendor payments and weekly payroll. The company sought a solution to provide more immediate access to working capital, allowing them to maintain smooth operations and uphold their reputation for quality and reliability without taking on additional debt.

The Solution

Sanitary Construction Company discovered Constrafor's Early Pay Program in their search for a solution to their cash flow flucuations. The Early Pay Program accelerates payments on approved invoices, ensuring subcontractors are paid within 48 hours. After considering other options, the company chose Constrafor's Early Pay Program because it offered immediate financing without increasing their debt.

"The Early Pay Program has been a game-changer for us. We have barely used our credit line and maintained a zero balance for most of the year. This has given us the financial flexibility to manage our operations better," said William Wyatt, CFO at Sanitary Construction Company.

By using the Early Pay Program, Sanitary Construction was able to manage their operations more efficiently and continue to deliver high-quality projects on schedule.

The Results

The implementation of Constrafor's Early Pay Program brought transformative and far-reaching results for Sanitary Construction Company, fundamentally changing their financial operations and positioning them for future growth. The immediate and consistent cash flow allowed them to move from a reactive state of managing financial obligations to a proactive model of strategic investment and relationship-building.