In Singapore, JTC and Kimly Construction are the first to speed up work claim certification and payments with a fintech platform.
In what is touted as a first in the Asia Pacific region, payment providers and fintechs have teamed up to help building contractors gain faster access to working capital.
Traditionally, such contractors — particularly those further down the supply chain — have faced long payment cycles due to complex claims submission, lengthy approvals, and payment processes. This often stretches up to 35 to 100 days, and could cause working capital strains.
Advancements in digital payment technology and infrastructure have now made it possible for the relevant fintechs, financial services firms and payment providers to reduce this strain.
The program is a good case study of the concerted use of a digital platform and financial services to streamlining work certification processes for contractors. Furthermore, the platform has financing capabilities already embedded in the services offered. Once developers or main contractors certify any work claim, subcontractors will be given the option to be paid for their services, ahead of the invoice due date.
In Singapore, the first two firms to try out this platform created by fintech firm Doxa are JTC Corporation and Kimly Construction. They will be using past projects to simulate payment process. According to Doxa CEO Edmund Ng, the platform is designed to connect buyers, suppliers, and financiers with seamless, swift and secure trading experiences: “This automated process is designed to facilitate more timely payments, ensuring that everyone in this industry manages their operations more smoothly.”
Said Elaine Lee, Director, Contracts & Procurement Division (Construction), JTC: “We value opportunities that enhance our operational efficiencies… towards improving the payment process and enhancing visibility across the value chain within the construction industry. We believe it will make a noticeable difference and we are keen to see the benefits it will deliver.”
At Kimly Construction, director Louis Khoo noted: “This new payment system is a positive step to resolving the longstanding challenges faced by stakeholders in the construction supply chain. We are hopeful that such efforts will pave the way for more streamlined operations in the future.”