Tseung Kwan O and Riverchain: Transforming Financial Access for Construction Subcontractors
The Financing Dilemma in Hong Kong's Construction Sector
A Hong Kong building subcontractor surnamed Chan, known for his electrical work at Hong Kong International Airport, faced significant financial strain waiting months for payments. Traditional banks offered slow loan approvals, leaving subcontractors in dire need of cash as the construction sector grapples with payment delays.
Riverchain's Prompt Solutions
Riverchain, a peer-to-peer fintech start-up, steps in to bridge the gap created by lengthy wait times for payments. Subcontractors like Chan can upload project invoices to receive cash advances of up to 90% within 48 hours, empowering them with necessary funds to pay wages and cover material costs.
The Impact of Labor Disputes
In July, a labor dispute at Seasons Place, a venture between MTR Corp and Wheelock Properties, highlighted the pressing issue as nearly 100 workers were owed over HK$6 million in wages. This incident reflects broader challenges faced by subcontractors amidst the construction industry's downturn.
- Over HK$53.8 billion blocked in the supply chain annually.
- Labor disputes growing due to delayed payments.
- Riverchain provides swift cash advances, alleviating liquidity problems.
Empowering Through Digitalization
CEO Ben Wong emphasizes Riverchain's role in digitizing financing for the construction industry, aiming to turn accounts receivable into accessible cash. By utilizing industry data, Riverchain enhances transparency and efficiency in the supply chain, positioning itself as a beacon of support for Hong Kong's essential construction sector.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.