One of the leaders in construction software, Procore Technologies, which is also integrated with TrueLook, has recently announced that they are expanding into the financial technology (fintech) sector. Fintech includes software and other technology solutions that enable financial and/or banking transactions and services.
Procore’s recent acquisition of the payment and lien process management company Levelset will allow them to solve the “capital constraints” that roadblock subcontractors and smaller firms from expanding their business as well as acquiring potential work bids. Having gone public in 2022 with an eight billion dollar market cap, this new financial solution will add to Procore’s already expansive offerings, including:
- Project management
- Quality and safety
- Budget and finance management
- Design
- Business development and bids
With digitization on the rise, platforms like Procore provide large firms as well as contractors the freedom to plan, manage, and execute projects with their teams across multiple sites, in different locations. Adding fintech to construction firms’ toolboxes is a huge step to increasing equity and access to business growth across the industry, as it will allow smaller firms and subcontractors the opportunity to secure bids with higher upfront costs.
Fintech has the potential to bridge cash flow gaps and increase productivity and business growth.
In a recent CNBC interview, CEO Tooey Courtemanche discussed the reasoning and overall goals for this new expansion. As a leading project management platform, Procore has always been dedicated to increasing efficiency and productivity for construction teams. As firms increasingly transfer project planning and coordination to digital platforms, it is more important than ever for these platforms to be able to utilize the growing storage of client data to streamline work processes and create better project experiences.
Procore’s fintech offering is in the beginning stages, but they are planning to experiment with and expand areas such as insurance, payments, and more. This initiative aims to increase productivity in construction starts while also improving outcomes by bridging finance gaps for firms and contractors who struggle with upfront costs.
One of the biggest roadblocks in construction business development is cash flow.
Research shows that with cash flow gaps, subcontractors are more likely to have delayed payments than their general contractor counterparts – in an industry that requires supplies, tools, and travel to just get started on a jobsite, these payment gaps are large roadblocks that affect not just the efficiency of one project but the entire log of work that firms can see in a year. For smaller firms with less capital, fintech solutions that can analyze current cash flow, as well as historical and future patterns of work, can mean bridging the gap between payments.
Procore is expanding into the fintech sector to address cash flow problems in material and labor procurement for subcontractors.
For subcontractors, this can be especially critical, as supply, labor, and transportation are often needed upfront to begin projects before full or even partial payments exchange hands. Procore aims to address and mitigate this particular roadblock by bridging the payment gap, using historical data, current cash flow, and consistency of work to offer credits to keep projects going. Procore’s fintech solution can be a promising investment for subcontractors who find themselves scrambling to apply for and secure bids while struggling to cover upfront supply and logistical costs. As all industries and sectors prepare for a looming recession while still recovering from the pandemic, global supply chain shortages, and rising interest rates, data-based financing might just be the factor to keep everything afloat during these uncertain times.
Construction software partners value innovation and growth
TrueLook is proud to partner with future-looking companies like Procore because we understand the importance of innovation and efficiency across all industries, particularly in construction. As our industry continues to digitize, it’s critical to find software and platforms that keep customer data secure and are able to utilize data to make workflow and processes easier and more productive.
TrueLook’s Procore integration allows users easy access to jobsite images and video without the need to switch between multiple applications. Our construction cameras offer the security of jobsite monitoring, while our platform and integration partners streamline project management and workflow behind the scenes. Ready to elevate your practice? Take the first step in increasing productivity and security in your form by scheduling a free demo, or check out more on our blog to keep up with the latest construction news and insights.
