Every day we wake up to news about inflation and the potential for interest rate increases. This state of inflation, the highest in 40 years, is not showing any sign of improving, and there will be greater pressure on the entire construction and development stakeholder chain. It is becoming essential to move money more efficiently and consider finance alternatives and the use of technology.
Harbr, a Canadian construction FinTech company, has been working closely with industry veterans for years in search of gaps and alternatives in the construction FinTech space. A product they released in late 2021, Payar, is supporting one of those gaps: slow payment cycles. Payar enables trade contractors to request payments (for a minimal fee) outside of normal pay cycles which are typically 60-90 days, creating a transactional funding option. Slow payment cycles often hinder progress on a project and can ultimately force companies to go out of business if they are not getting paid by multiple clients.
Harbr works up and down the value chain, dealing with lenders, clients, and contractors to help facilitate these transactions. Not everyone on a project has to participate in the Payar product, but it now creates optionality for contractors as they progress through their work. The software helps digitize the request of these payments, and also derisks it through Harbr’s risk model. When transacted, there’s a complete audit trail for
the parties involved.
With rising interest rates and costs impacting all businesses and projects, the need for cash flow within a reasonable timeline is key. Construction finance is moving to the edge, with companies like Billd funding the supply chain, Built supporting loans, and now Harbr helping finance progress. All of these companies prove that there is significant demand for alternative financing methods that are designed and productized for the
construction industry. It’s always a good idea to stay informed on the newest industry tech and products to see if there’s an option for your company to create efficiency or increase profits.