Aqueous masters multi-state payments and fuels innovation with Constrafor

The Challenge

Operating across multiple states presented unique cash flow challenges for Aqueous. "Working for municipalities, there is a lot of uncertainty with cash flow," explains David Cornish, CEO of Aqueous Infrastructure. "Each state has different procurement laws, and each municipality within each state has their own set of procurement laws." The difference creates both logistical headaches for Aqueous and increased uncertainty around when they’ll be paid. 

This complexity is compounded by the capital-intensive nature of their work, including having to deploy crews across the country. Projects require significant upfront investments in labor, equipment, insurance, and travel expenses, effectively making Aqueous "act as a bank" for municipalities—something they’re happy to do to ensure projects can move forward. On top of this expense however, Aqueous is juggling other large financial burdens. For instance, certain states like New York require their own separate workers' compensation policies, which can cost Aqueous anywhere from $40,000 to $200,000 annually per state.

All of these uncertainties and variables combined have made projecting out budget and cash flow extremely difficult, with David sharing that, “It’s left a major void in our growth.”

The Solution

After exploring various financing options, Aqueous found their solution in Constrafor's Early Pay Program (EPP). Traditional financing routes were proving inadequate—coming with lengthy approval processes, complex requirements, and in some cases, predatory terms and aggressive collection practices. What Aqueous needed was a solution that could easily adapt to their procurement workflows and provide reliable, predictable payment timing across their multi-state operations.

EPP addressed these challenges by providing consistent payment terms regardless of when municipalities released funds. This was particularly valuable given the complex web of state-specific requirements and upfront costs Aqueous manages. "Constrafor has provided that stability, as far as being able to rely on dates and prompt payment,” explains David. The program's reliability allowed Aqueous to focus on operations and growth rather than constantly managing cash flow uncertainty.

"Constrafor has provided that stability, as far as being able to rely on dates and prompt payment." -David Cornish, CEO Aqueous 

While other financing options can quickly erode project profitability through compounding fees, interest charges, and hidden costs, Constrafor's straightforward approach made sense for Aqueous's business model. "If you think about the costs and how much money you're putting out just to wait 30, up to 45 days, you're putting out a significant amount of money," explains David. "Being able to collect that upfront, have a retainage to ensure Constrafor's investment, and then pay just a small percentage fee in our opinion is more than worth it."

The Results

The impact of implementing EPP has been transformative, particularly during challenging market conditions. When the municipal market experienced an unexpected slowdown in 2024, the program provided crucial stability. "In a year like we've had this year, where it's been less work performed than projected, it's allowed us to restructure, run more lean, fine-tune things, and guarantee that projected cash flow versus the uncertainty of not," notes David.

This financial predictability has enabled Aqueous to focus on innovation, including the development of a proprietary asset management platform. This technology allows them to automate field service work orders, data collection, and reporting to help municipalities better manage their infrastructure assets. "Previously, we were backed up for months and we wouldn't get paid timely," explains David. "Whereas now we can produce those reports instantaneously, which means that we're able to get paid by you guys in a timely manner because that report is going out immediately."

The partnership with Constrafor has become fundamental to their business model, driven largely by the program's efficiency. "The communication is easy, the process has been streamlined, and the rapid nature of how the process works is almost astonishing," notes David. "It's a breath of fresh air compared to other financial arrangements, doing a great job of ridding the process of bureaucracy." This seamless experience, combined with the program's reliability, has made it a long-term solution for sustainable growth. "Our only regret as far as the relationship goes is not knowing about Constrafor sooner," reflects David. "It truly is a great option for anybody that has to wait any period of time to be paid and put out funds up front in order to do so." Looking ahead, Aqueous plans to leverage this financial stability to expand their technology offerings and continue improving infrastructure sustainability across the country.