1. INTRODUCTION
WHAT IS EARLY PAY PROGRAM?
Constrafor’s Early Pay Program (EPP) has emerged as the construction industry leader for receivables financing - particularly for trade contractors. With the power of invoice financing, EPP empowers contractors to take control of their cash flow, and enables General Contractors to offer a low-risk and low-cost payment acceleration option for their trade partners.
Receivables financing, also known as invoice financing and supply chain financing, has made a significant comeback in recent years as businesses are now requiring alternative and more efficient capital options. Today, receivables financing is being utilized by 50% of S&P 500 companies and has become a competitive financing option particularly for SME businesses that deal with a stronger credit client.
EPP is the only receivables financing option that benefits both General Contractors and Trade Partners.
EPP provides trade contractors a reputable receivables option, while affording General Contractors a transparent and cooperative financing partner. With EPP, GCs can reduce prequalification blind spots and decrease the risk and costs associated with Subcontractor Default Insurance (SDI), making it a win-win for all.
In short, EPP is an alternative financing option for trade partners, at no cost to GCs. EPP even helps lower insurance premiums for General Contractors through SDI rebates and in-depth analytics.
