Construction Payments as a Competitive Advantage

Tap into your advantages in capital and financing to solve common cash flow problems for your ecosystem. You’ll attract a scarce supply of talent, provide access for underrepresented groups, and reduce process risks.

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

Small and Minority 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 MBE and DBE 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 Reduce Risks and Attract Talent

Inject your inexpensive and completed funding. Chipi enables developers and other ecosystem members to insert their readily available funding into the construction materials purchasing process

 

The cash flow requirements are filled by upstream team members such as the GC, Lender, or developer with direct and real-time payments to the value-chain endpoint such as the frontline sub or materials supplier
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
Use your payment workflow to BEAT THE COMPETITION FOR TALENT

Use Point-to-Point Payments, which Bypasses Intermediaries and hence Avoids Delays, as a Way to Compete for the Best Subcontractors and Materials Suppliers

Leadership On Diversity, Equity and Inclusion

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

Remove Hurdles to Workforce Diversity

Providing Your Funding to Make Real-time Payment for Materials and Even Payroll acts a Perfect and Cost-Effective Substitute to External Finance

Minimize risk on your construction project

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.

Eliminate the cost of expensive financing embedded in your materials prices

Bank your own project and save money and lift communities.