April 14, 2016
Textura Early Payment Program helps general contractor catamount constructors pay subcontractors faster
Supply chain finance solution designed to improve subcontractors' cash flow, working capital management
CHICAGO -- Textura Corporation, a leading provider of collaboration solutions for the construction industry, announced that Catamount Constructors is using the Textura Early Payment Program (EPP) to accelerate payments to its subcontractors.
EPP is an innovative alliance between Textura and financial services company Greensill Capital. Designed to optimize working capital management at construction companies, EPP enables general contractors to use third-party funding to offer optional early payment across their subcontractor community. This approach reduces subcontractors' typical payment waiting time from weeks or even months to just days after invoice approval. By improving cash flow and making payment timing predictable, EPP provides an affordable option for subcontractors that can reduce their need for traditional financing, diminish financial stress and help subcontractors better manage their working capital.
"The Early Payment Program provides a new way for us to help improve cash flow for our subcontractors," said Geoff Wormer, Chief Executive Officer at Catamount Constructors. "By significantly shortening the payment waiting period and providing certainty around payment dates, we can reduce stress for our subcontractors and enable them to grow stronger. That helps improve relationships with our project partners and results in a stronger project overall," Wormer said.
Lakewood, Colo.-based Catamount Constructors ranks No. 197 on Engineering News-Record's 2015 ENR 400 list of the largest general contractors, based on 2014 revenues of $329.2 million. It provides a range of building services to clients in numerous markets, including multifamily, retail, industrial, office, energy, medical, automotive, hospitality and government.
The EPP solution, which enables supply chain finance (SCF) programs in construction, works by leveraging the financial strength of the general contractor's balance sheet and using Textura's CPM® technology to facilitate early payment to subcontractors through Greensill Capital. Greensill Capital is an independent financial services firm and principal investor group specializing in structured trade finance, working capital optimization, specialty financing and contract monetization.
"The Early Payment Program was designed to address the construction industry's unique payment and working capital challenges," said David Kelly, Executive Vice President of Client Services at Textura. "This first-of-its kind program enables general contractors like Catamount Constructors to help subcontractors improve their cash flow and capital management, leading to better outcomes for all project participants," he said.