Payment firm Visa, Singapore-based United Overseas Bank (UOB) and fintech Doxa have partnered to facilitate quicker and seamless payments for contractors via deep-tier financing.
This collaboration, the companies say, is the first of its kind use case in Asia-Pacific and will help contractors gain faster access to working capital.
Traditionally, contractors, particularly those further down the supply chain, have faced long payment cycles due to complex claims submission, lengthy approvals and payment processes, which often stretches up to 35 to 100 days and result in a strain in working capital for these contractors.
The Doxa Connex platform significantly reduces time that contractors get paid by streamlining the work certification process. In partnership with Visa, the Doxa platform has further been enhanced to provide embedded financing capabilities. Once developers or main contractors certifies the work claim, subcontractors will be given the option to be paid for their services through UOB virtual cards, ahead of the invoice due date.
The first two companies participating in the programme are JTC Corporation (JTC) and Kimly Construction (Kimly). They will be conducting trials using their past projects to simulate on the Doxa Connex platform for their payment process.