SCOTTSDALE, Ariz., May 11, 2016 /PRNewswire/ -- Atlas44 announces its $10 million dollar equity infusion by RJT Credit. The new funding will be used to increase current trade finance offerings, secure key hires, intensify marketing efforts and support ongoing growth and nationwide expansion. Atlas44 is the parent company of CreditSuppliers, a pioneering fintech company serving the United States' construction industry by providing revolving lines of trade credit to contractors.
The Market Need
Due to its historically inefficient nature, the construction industry has long been underserved, specifically in the area of funding. Financing and credit options are limited, difficult to process, and highly constraining for contractors. CEO and founder, James Nielsen, set out to develop a solution to this construction conundrum that so many in the industry face. Contractors need considerable working capital of their own once they are awarded a job; materials, labor and overhead are costs that exist regardless of any upfront payment of the contract. The inefficiency is created by banks' slow release of construction payments; contractors are paid in partial payment draws until the project is complete. The slow payment cycle limits construction companies' potential for growth by restricting their ability to take on new projects. The system of payments also puts pressure on suppliers, as they are last in the payment chain.
CreditSuppliers' proprietary system allows them to approve contractors for revolving lines of trade credit for the purchase of construction project supplies and materials. The suppliers are paid in 10 days or less and the contractor is given up to 150 days to pay back the invoice. Much of the genius behind the CreditSuppliers model is that suppliers are paid directly on behalf of the contractor ensuring timely invoice payment and enabling contractors to negotiate discounts since they are considered "fast payers." Fast payments on invoices greatly increase the supplier's bottom line. Through the cloud-based CreditSuppliers platform, contractors better manage their cash flow by removing the pressure of materials costs. Contractors then can redirect their existing working capital as needed.
"It's about time someone worked out a cash flow solution for contractors. When we found out what CreditSuppliers was doing we knew we wanted to get involved. We've experienced, firsthand, the conflicts within the construction industry and we can't wait to see the kind of impact this will have," says Chad Meyer, from RJT Credit. Paul Sargent, also from RJT Credit, said, "The expertise we have in the real estate lending world along with our intricate contractor knowledge make us a great partner for Atlas44's growth."
"At the heart of construction is growth. From schools to hospitals to businesses, construction projects shape our cities and communities. It's an honor to serve the industry that builds our future. With these resources we are ramping up operations, expanding our reach and capabilities to further our mission in supporting this important industry," says Juan Lorenzana, Chief Operations Officer of CreditSuppliers.
The company's Atlas44 Engine™ is a proprietary solution for businesses that collects, classifies and analyzes data to secure and collateralize financial transactions. Atlas44 Engine provides access to capital, mitigates risk, reduces accounts receivable balances, and provides a new security instrument to the capital markets.
Based in Scottsdale, Arizona, Atlas44 holdings include: CreditSuppliers™, LienTitan™ and Pantheon Xchange™
Founded in 2014, CreditSuppliers provides a proprietary SaaS+ solution that supplies contractors with financing for project materials, and pays suppliers 80% faster than industry standard.
Learn more about CreditSuppliers.com at www.creditsuppliers.com.
About RJT Credit
RJT Credit is an affiliate of RJT Homes, a nationally acclaimed home building company with 35 years of experience in the construction industry. Beginning in 1974 with heavy construction (roads, bridges, dams, etc.) until 1993 when they shifted to the home building and land development business in addition to real estate development and private lending. RJT has offices in Southern California and Arizona, with real estate projects throughout the Southwest USA.
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