By some estimates, the U.S. construction industry market size is over $1.3 trillion, made up of over 3 million small and medium-sized businesses. Unfortunately, the industry has a reputation for lagging behind others in technology adoption and has often been neglected by traditional financial institutions. Some companies are trying to change that situation.
San Francisco-based BlueTape, for example, blends affordable financing options with easy-to-use accounts receivable and invoice management tools. Construction pros can use BlueTape credit to buy building materials at any supplier and pay back over time. BlueTape has also forged a community of construction industry dealers and suppliers that offer BlueTape credit instantly to their trade customers. This allows the construction suppliers to lower their risk and improve their cash flow and customer experience.
Making money and credit available requires having money readily available, too. BlueTape recently closed a $50 million debt funding led by Arcadia Funds and a $5 million seed round led by Chicago Ventures. Other investors include construction industry executives, real estate developers, and Plug and Play Ventures.
This funding gives BlueTape the resources to continue providing payments and financing for the construction industry. BlueTape will increase lending, expand its team, and develop new products to help construction businesses address the nation’s housing and infrastructure crisis.
The additional funds will have an immediate impact on BlueTape’s customers by providing quick access to much-needed funding for building materials keeps that will keep existing jobs moving and allow for more new revenue-generating projects. In addition, since BlueTape is designed for small to medium sized construction companies, the funds will allow higher approval rates and a better ability to give contractors up to 120 days to pay their building material invoices.
BlueTape credit can be used at all the building suppliers that industry professionals use and trust. BlueTape also has a mobile app that allows management of invoices, collecting payments, and paying bills simple and convenient for those on the move. All loans on the BlueTape platform are originated by CBW Bank, a member of FDIC.
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