Risk-Free Financing Income for Construction Project Owners

Risk-free financing arbitrage. Owners have scale in raising capital that can be deployed earlier in the process to eliminate expensive trade finance, reduce project risks, and enable financing access for underrepresented groups.

Trade Finance Inflates Subcontractor Bids

Materials prices reflect expensive financing. Subcontractors of all sizes depend heavily upon suppliers for financing purchases.

Difference in financing cost as provided by materials suppliers to subcontractors in much higher than financing provided by project owners
financing  access  for subcontractors is a problem

Local Hire and Local Procure Businesses are Underbanked

Workforce diversity has poor access to finance. Suppliers and subcontractors that are small or from underrepresented groups and underserved communities are subject to barriers that reflect both commercial realities and human bias

SBE and UBE have limited access to trade credit and are unbanked
solution is to enable owners to use their financing to replace supplier trade credit

Close the Financing Gap and Save

Inject your inexpensive and completed funding. Chipi enables owners to insert their readily available money into the construction materials purchasing process

 

Property owner make payments for materials purchases. Chipi enables subcontractors to enter materials quotes from a chosen supplier into an approvals, funding custody, and payment process that alleviates the need for external and expensive financing
impact of having owners of construction projects insert their financing during materials purchasing

Owner Earns Income Solving Business Challenge for Team

property owner generates income inserting its capital into materials purchasing
impact of having owners of construction projects insert their financing during materials purchasing

Business Solution delivers Economic and Social Impact

Intercepting payments for materials solves critical value chain problems, Day 1. Subcontractors and suppliers, particularly those from underserved groups, face continuous cash flow problems that are minimized when financing materials is no longer a challenge.

Chipi's solution is faster than factoring, reverse factoring, dynamic discounting, supply chain finance, invoice finance, PO financing, receivables finance, net 15 payment plans, and payment applications

Minimize Project Risk

Money scarcity creates duress and chaos. Cash management techniques by subs that introduce project problems include risking delays in deliveries by ordering at the last moment and shifting workers to projects that will generate cash faster.

62% of subcontractors with low levels of capitalization introduce project delays.

Minimize risk on your construction project
Earn income

Earn Risk-Free Income on Your Capital

Earn income on idle financing. Earn a rate of return that is well above your cost of capital by simply inserting funds into the purchasing process to purchase materials for your own project.

Chipi will pay you either on a transaction basis or on a monthly basis.

Chipi’s workflow does not add any transaction risk for the owner.

Community Workforce Agreements Solved

Easily overcome the hurdle of equitable financing access. Offer an effective and easily understood solution that will demonstrate your commitment to workforce diversity and inclusion agreements. Please communities, municipalities, and unions that encompass your project.

Fulfill local hire goals (SBE, Micro, UBE), BIPOC goals, Targeted Disadvantaged Worker goals, Minority-Owned Businesses and Woman-Owned Businesses goals, and VOBE, DBE, LGBTQ, and XBE goals. 

Offer a solution that will address workforce agreements and please communities, municipalities, and unions
Eliminate mechanics liens and pre-lien workflows from rom suppliers

Eliminate Lien Workflows and Risks

Eliminate legal risks. Chipi eliminates trade credit and hence the need for lien workflows or filings as it relates to suppliers.

35% of construction firms file mechanics liens.

During COVID’s initial outbreak, lien filings grew 40% demonstrating the sensitivity and vulnerability of construction finances.

Eliminate the cost of expensive financing embedded in your materials prices

Bank your own project and save money and lift communities.