Constrafor is a NYC-based SaaS and fintech platform who are reshaping the construction finance landscape. Purpose-built for construction, Constrafor offer Financing programs for their General Contractor and Subcontractor clients.
Problem
Constrafor are revolutionizing construction finance with innovative products that strengthen the relationships Subcontractors have with GCs. Achieving this goal requires sophisticated financial analysis and monitoring tools. In their early stages, with a smaller team, they faced a critical challenge: how to perform time-intensive financial assessments to determine creditworthiness without overwhelming their limited resources?
Constrafor’s Credit Ops team needed a way to quickly analyze customer financials, parse through complicated bank records, and monitor post-funding activities. "Traditionally, we would have to manually review financial documents to build tables evaluating risk and the creditworthiness of subcontractors,” explains Director of Credit Operations Alay Mehta. This approach, however, is prone to error and very time-consuming.
To accurately investigate where the money is going and where it’s flowing, Constrafor needed a solution that could automate these processes, integrate seamlessly with existing systems, and provide useful context for banking transactions.
Solution
The impact of Heron Data on Constrafor's operations has been transformative. By partnering with Heron Data, Constrafor has significantly accelerated their financial analysis and monitoring processes while maintaining their focus on core product innovation. This time-saving translates to tangible benefits: we estimate that Heron Data has reduced our manual effort from "anywhere from 15 to 25 minutes depending on the customer, to literally sub 10 seconds."
Constrafor’s Credit Ops team now operates with unprecedented efficiency, thanks to Heron's automated financial analysis and monitoring tools. These solutions have streamlined our underwriting processes, enhanced our ability to assess customer financial health, and simplified complex monitoring tasks. And with the flexibility of Heron, Constrafor has been able to quickly iterate on these processes as our business needs evolve. As Alay put it, "It's been a big component helping us tweak our underwriting model as we’ve matured."
Another major factor that led us to partner with Heron Data was their willingness to meet our specific needs. Despite having a use case that fell slightly outside of their typical scope, Alay noted that Heron Data was able to build a custom solution for Constrafor in less than two weeks.
This agility has been crucial in their fast-paced industry, allowing Constrafor to adapt quickly to market changes and customer needs while maintaining their competitive edge in construction finance technology.
{{Alay-Mehta}}
