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3 min read

How Demo Plus is Achieving Rapid Growth with Constrafor's Early Payment Program

How Demo Plus is Achieving Rapid Growth with Constrafor's Early Payment Program

Audio Interview

We were fortunate to catch up with Jolene Fechter, CFO at Demo Plus as she shared her team's experience in working with Constrafor. To listen to the customer interview, click the pause button to stop the narration of the blog above and then click the play button below.  

Demo Plus Interview
22:20

 

Demo Plus leverages Constrafor’s early payment program to transform their cash flow, enabling them to finance rapid growth and accept more work.

"Constrafor's early payment program allows us to accept more work and change orders because we can finance them quickly. It's been very beneficial in maximizing our profit by allowing us to reuse resources & cash for new opportunities." - Jolene Fechter, CFO, Demo Plus.

 

Overview

Demo Plus Group is Nashville's top choice for comprehensive site preparation services, including environmental, demolition, grading, and utility services. With a highly skilled team and a versatile fleet of equipment, Demo Plus is equipped to handle:

  • Site Demolition and Abatement

  • Aggregate Crushing

  • Infrastructure Development

  • Excavation and Grading

  • Property Reclamation

  • Site Utilities

Demo Plus addresses pain points such as complex site preparation, tight space operations, and regulatory compliance, ensuring projects are completed on time and to the highest safety standards. With a proud tradition of excellence and a commitment to safety, Demo Plus Group provides reliable and efficient solutions for all construction needs. Their dedication to solving complex problems and maintaining high standards makes them a trusted partner in the construction industry.

Challenge

Demo Plus faced significant challenges with cash flow due to industry-standard payment terms of 60 to 90 days. This delay made it difficult to finance growth, especially as the company doubled in size following new ownership.

"In an industry where payment terms are generally 60 to 90 days, it's really hard to finance growth, especially with doubling our size."

Solution

Constrafor's Early Payment Program (EPP) provided Demo Plus with a streamlined and efficient solution to their cash flow challenges. By enabling payments as quickly as five days after billing, Constrafor empowered Demo Plus to finance their growth and accept more work.

Results

With Constrafor's early payment program, Demo Plus experienced several key benefits:

  • Rapid Payment Processing: Payments received in as few as five days after billing.

  • Enhanced Cash Flow: Improved cash flow allowed for the acceptance of more work and change orders.

  • Simplified Process: Easy and straightforward process with minimal documentation required.

  • Flexibility: No obligation to use Constrafor for every pay app, allowing for selective use as needed.

  • Auditor and General Contractor Acceptance: Smooth acceptance by auditors and general contractors, with no issues or additional obligations.

"It's easy as could be. I didn't expect it to be quite this easy, but once they understand, they realize they are under no obligations. The process has been a lifesaver for us, especially during our growth phase."

Key Points:

  • "It's as easy as it could be. I didn't expect it to be quite this easy, but once we communicated to our GC, they recognized they are under no obligations. The process has been a lifesaver for us, especially during our growth phase."

  • "Constrafor's Early Payment Program allows us to accept more work and change orders because we can finance them quickly. It's been very beneficial in maximizing our profit by allowing us to reuse resources and cash for new opportunities."

  • "I was thrilled to death that there were no issues whatsoever with the auditor using that as early payment and not taking exception to it and trying to put in the notes, if it goes to the audit, that it was an assignment, because it's really not. They could have read it other ways, but they read it the right way so that was really good."

  • "The contract doesn't obligate us to use Constrafor for every pay app. We can use it as needed. For example, just before year-end, I wanted our cash to look good for our bonding company, so I pulled on a pay app even though I didn't need the cash."

  • "It's been great for large change orders. It's been great for funding our growth. We had a million-dollar change order, and by getting paid quickly through Constrafor, we could accept another change order immediately."

  • "I've never once felt like they didn't trust me. I've never not trusted them. It's a really streamlined, easy process. I don't get thrown around four or five people. There are two people that I email. It's super easy."

  • "It's a very legit program. The key is helping your client understand that there's no risk to them. The risk is always on us as the subcontractor. The process is streamlined and easy, and I've always had the money within 24 to 48 hours after the general contractor pays. It's been a lifesaver for us, especially in funding our growth."

Wrapping it up

Demo Plus’s experience with Constrafor’s early payment program highlights the transformative impact on cash flow and growth potential. By enabling rapid payments and providing a flexible, easy-to-use solution, Constrafor has empowered Demo Plus to accept more work, finance large change orders, and sustain their rapid growth trajectory.

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