Riverchain and the Transformation of Working Capital in Hong Kong's Construction Sector

Challenges of Working Capital in Hong Kong's Construction Sector

With the construction sector in Hong Kong facing significant challenges, subcontractors often struggle to secure timely payments. A recent case highlights the plight of Chan, an electrical subcontractor, who waited months for payment from his main contractor. As the financing gap in construction widens, businesses need efficient cash flow solutions.

Riverchain's Innovative Solution

Enter Riverchain, a fintech start-up revolutionizing the access to financing for subcontractors. By using alternative industry data, Riverchain quickly assesses a borrower's eligibility. Kun-Hong Kong's subcontractors can now receive up to 90% of their project funding in less than 48 hours. CEO Ben Wong emphasizes the importance of digitalization in the construction sector, aiming to enhance transparency and efficiency.

The Financial Landscape

• Payment delays are locking up an estimated HK$53.8 billion annually.
• Banks often take months to approve loans, exacerbating liquidity issues.
• Riverchain's risk model helps unlock value from construction data.

Looking Ahead

Having supported over 30 projects since its inception, Riverchain is optimistic about leveraging a HK$400 million fund to boost financial support for contractors in Hong Kong and beyond. The CEO sees a promising outlook in the Southeast Asian market, where similar needs exist for working capital solutions in construction.