Lower the Costs and Risks of your Subcontractors
A new SaaS-enabled workflow that provides early access of your bank lines to your subcontractors during materials procurement
Workforce Growth
Cash Flow Solution
Risk Solution



Attract, grow, and diversify your workforce
Eliminate financial barriers for small businesses
Mitigate performance risks from small subs
Cash Flow Solution

Eliminate financial barriers for UBE’s & SBE’s
Workforce Equity

Eliminate financial barriers for small businesses
Risk Solution

Mitigate performance risks from small subs

Typical progress payments can be easily broken into smaller amounts that can better track needs of your subcontractors

These small payments can be pre-programmed with release rules and approvals, well in advance

This release of funding is point-to-point, bypassing all intermediaries, which eliminates misuse risks

That means this funds flow automation closes the timing gap between cash needs and cash payments

For example, construction materials are paid upon delivery directly to the supplier

This eliminates the need for deep external financing by solving the underlying problem – negative cash flow

“Internalizing” the funding needs of your team creates a much better-capitalized project ecosystem

by eliminating the main culprit that disrupts efficiency and limits production capacity

Finally, you are removing the main barriers for participations by smaller subs and suppliers – large amounts of capitalization and deep financing options

Summary of Main Features

Internal Funding Replaces External Financing
Funding versus Financing?
Funding is usually sourced from an “internal” non-financial entity and may not have a cost or require repayment. Internal entities are part of your value chain.
Financing is always sourced from an external financial entity and includes both cost and repayment.
Internal Funding Replaces External Financing
Funding versus Financing?
Funding is usually sourced from an “internal” non-financial entity and may not have a cost or require repayment. Internal entities are part of your value chain.
Financing is always sourced from an external financial entity and includes both cost and repayment.

Payments Bypass Intermediaries

Fractionalize Payments Meet Cash Flow Needs of Subs & Suppliers


Fractionalize Payments Meet Cash Flow Needs of Subs & Suppliers
Cash Flow Solution
for small construction businesses
Eliminate the most common and largest challenge for SBE’s – cash flow availability

Risk Solution
for Developers, GC’s, and Tier 1 Subs
Mitigate challenges faced by small subcontractors that introduce risk
Undercapitalization Creates Risks for Projects
80% of all subcontractors spend “a majority of the week” chasing payments.
62%
Create Schedule Delays
DBE’s and Small Businesses are Underbanked
59% of external financing requires a personal guarantee
9%
Use External Financing
Small Construction Businesses have Low Cash Reserves
Majority-White businesses have 7x the cash buffer of Majority-Hispanic businesses and 13x the cash buffer of Majority-Black businesses.
20
Days Cash Buffer
Construction Failure Rates are High
Exit rates are 59% within 5 years and 73% within 10 years. DBE’s have even higher exit rates, masked by their inability to even enter construction ecosystems.
24%
Failure within 1 year
Days-Sales-Outstanding is High
Materials purchases begin 30 days before the DSO clock starts means suppliers are even more compromised
52
Days Sales Outstanding
Workforce Growth & Equity
to attract, grow, and diversify your workforce
Small subcontractors can bypass limited capital and financing access while freely adding production capacity


Payment Fractionalization Maintains Financial Alignment
Holding 100% of Payment is an Unnecessary Amount of Leverage and Creates More Serious Risks such as Operating Failures


Easy to Use, Handles Every Approval Process
Approval requests can follow any path, at will, and can include as many people as needed.
Chipi can handle simple approval chains or very complex ones.


API Integration
Integrate into your existing technology stack. Request our API’s to integrate into your ERP, payment application, or draw control systems
Alleviating Financing Challenges will Attract Top Subcontractors and Suppliers
Bank your own project and see how it can change productivity and workforce diversity