Suppli Raises $3.1M for Construction AR Platform

Suppli Raises $3.1M for Construction AR Platform

Suppli has raised $3.1 million in seed funding to grow its platform for construction suppliers.

The platform enables independent construction material suppliers and distributors to digitize their accounts receivable (AR) processes and offer their customers online payment and credit, Suppli said in a Thursday (Jan. 26) press release.

“Trade credit is the lifeblood of a material vendor but is often viewed as a ‘back office’ function,” Suppli Co-founder Thanasi Skafidas said in the release. “Suppli turns the credit relationship into a competitive advantage by making it convenient, seamless and less risky.”

PYMNTS research has found that as working capital from traditional lenders evaporates — with one survey finding that big banks’ approval rates for business loans dipping below 15% — small and medium-sized businesses (SMBs) are seeking fresh funds from digital channels.

This has left SMBs scrambling for new sources of working capital from non-traditional sources, according to the January/February edition of the “Digital-First Banking Tracker®,” a PYMNTS and NCR collaboration.

Among construction companies, there are major issues being caused by late payments. In 2022, there was a 53% increase in the number of late payments for wages and invoices and a 28% increase in the number of firms reporting they had to halt or delay projects.

To remove friction, the construction industry is turning to new digital payments and automation of back-office processes, with 40% of construction firms increasing their budget for technology additions, as reported in the January/February edition of the “B2B And Digital Payments Tracker®,” a PYMNTS and American Express collaboration.

Suppli will use its new capital to expand its team, accelerate its development of new features and add financial products, according to the press release.

The company’s platform serves an industry that is just beginning to offer the technology-enabled capabilities that buyers experience in their personal lives. Currently, each sale of construction materials requires an average of 15 documents, getting paid takes 83 days and online payment is offered by fewer than 60% of suppliers, according to the release.

The platform aims to help independent construction material vendors compete with the big brands that are investing billions of dollars in customer-facing technology, Suppli Co-founder Ryan Ayers said in the release.

“Simply having an online payment portal isn’t enough,” Ayers said. “Suppli levels the playing field for independent vendors allowing them to offer a comprehensive solution with features like text-based payments, automated lien waiver requests, one-click deposits, full mobile-responsiveness and more.”

PYMNTS Data: Why Consumers Are Trying Digital Wallets

A PYMNTS study, “New Payments Options: Why Consumers Are Trying Digital Wallets” finds that 52% of US consumers tried out a new payment method in 2022, with many choosing to give digital wallets a try for the first time.

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