Chipi enables Small and minority construction businesses to bypass financing and capitalization limits by enabling them to access the capital of the project developer

Value Chain Funding

Internalize Existing Construction Financing to Fund the Cash Gaps of Small Businesses

Workforce Growth

Cash Flow Solution

Risk Solution

Eliminate cash flow pressures and the need for expensive external financing

Minimize risk initated by poorly capitalized and poorly financed subcontractors

Attract, grow, and diversify your workforce

Eliminate financial barriers and constraints

Eliminate risks from poor access to financing

Cash Flow Solution

Eliminate financial barriers and constraints

Workforce Equity

Attract, grow, and diversify your workforce

Risk Solution

Eliminate risks from poor access to financing

Internalized project funding, or value chain funding, enables the largest project entities to provide access to their own financings to empower smaller construction businesses

This bypasses barriers from external capital providers and releases much needed funding

This also creates a much better-capitalized project ecosystem that can maximize production capacity and efficiency

Finally, value chain funding enables financial inclusion which expands and diversifies the available workforce

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.

Cash Flow Solution

for small construction businesses

Chipi Impact on cash flow volatility and maximum negative cash flow needs during construction

Risk Solution

for Developers, GC’s, and Tier 1 Subs

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 and suppliers now have a reliable and fair financing mechanism that enables them to bypass financial barriers and freely add production capacity

Capitalization of Traditional Small Business is dependent upon credit cards and trade credit both of which are expensive and limits company size and growth

Capitalization of construction subcontractors and materials suppliers can access much greater amounts of in-kind capital to expand production capacity and grow business

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.

The application is easy to use and can be applied to any funding approval process

API is available for ERP and accounting integration

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

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