Procore tool to accelerate construction payments
Construction management software provider Procore has launched a tool it says will help solve a perennial problem in its industry: slow payments.
Procore Pay, built in partnership with Goldman Sachs, is a payment feature integrated into the Procore platform, the company said in a press release on Tuesday (November 8).
Due to launch next year, Procore said the tool helps businesses “reduce payment friction by speeding up invoice review and providing payment options powered by Goldman Sachs.”
The tool also helps businesses save time by reducing friction around data entry, onboarding and payment processing, while streamlining lien waiver collection using a automated lien waiver exchange.
In addition to Procore Pay, the company is also introducing Procore Connect on Drawings, which allows teams to connect to products “in other stakeholders’ accounts and sync data to reflect the most up-to-date drawings.”
Digitizing and automating AR could greatly help construction companies maximize efficiency and reduce costs, according to the “Working Capital Playbook”, produced by PYMNTS in collaboration with YayPay.
Without automation, the construction industry loses $100 billion a year, due to delays due to aging infrastructure used to transfer payments and slow companies to document, approve and communicate payments. As a result, almost half of all construction companies are waiting up to nearly three months to receive payments, according to the report.
In fact, the commercial construction industry has the longest ongoing sales cycle of any mature industry, Gregg Lund, CEO of construction finance firm Struxtion, told PYMNTS earlier this year.
“These are the days between when a subcontractor invoices the general contractor and when the general contractor pays them,” he said.
“In the value chain of material suppliers, [subcontractors], [general contractors]owners, banks that owners can use to finance their projects, [subcontractors] are the smallest player in the value chain and they basically bear all of the working capital expenses for really this $900 billion of business building put together,” he added.
We are always looking for partnership opportunities with innovators and disruptors.