Yes, developers that “bank” subcontractors have lower costs and risks
Let us show you how a new SaaS-enabled workflow reveals an inexpensive and readily available pool of funding that can be provided to your construction subcontractors
Workforce Growth
Cash Flow Solution
Risk Solution



Attract, grow, and diversify your workforce
Eliminate financial barriers for UBE’s & SBE’s
Mitigate financial and production risks from SBE’s
Cash Flow Solution

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

Attract, grow, and diversify your workforce
Risk Solution

Mitigate financial and production risks from SBE’s

Programmable and fractionalized payments enable the largest project entities – the developer, GC, or lender – to plan and then automatically release money in unbundled amounts in real-time based upon “confirmed completion”

That means funds flow automation for items like construction materials can occur upon delivery, direct to the supplier, rather than be bundled (and delayed) with other payments

So programmable and fractionalized payments eliminate the need for external capital providers that provide financing to fill cash flow gaps to subcontractors created by slow and lumpy invoice payments

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

Finally, programmable payments expands and diversifies the available workforce by enabling small businesses to gain access to capital intensive projects by eliminating financial barriers experienced by most targeted small businesses


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