Construction supply chains remain structurally misaligned with conventional banking finance. Payment cycles are long, documentation is fragmented, with liquidity stress impacting the entire supply chain. Payment delays of 60 to 90 days are common, with some extending considerably longer depending on project structure and contractual terms. This imbalance creates a funding gap that traditional banks struggle to address efficiently. Construction project receivables are often non-trivial to underwrite quickly, while informal lenders step in with interest rates that can exceed 20%, exacerbating financial strain rather than resolving it. The result is heightened execution risk across construction projects. Riverchain was formed to address this gap directly. Founded in 2022, the firm focuses specifically on working capital solutions across the construction industry rather than positioning itself as a generic blockchain or trade finance platform. Eddie Lin, director of product technology at Riverchain, described the problem as rooted in trust, timing and verification. Financing is often unavailable not because projects lack value, but because information is difficult to validate consistently across fragmented counterparties and paper-based workflows throughout project cycles. Riverchain’s response has been to design financing structures and technology around how construction projects operate, while introducing solutions and tools as the industry digitises progressively. Financing structure, pricing and economic logic Riverchain’s financing activity centres on short-tenor, self-liquidating instruments, primarily receivables factoring and short-term loans. Typical tenors range from 30 to 60 days and are aligned to milestones and payment cycles. Lin explained that pricing reflects the operating dynamics of construction projects. Depending on project quality, counterparty credibility and payment history, Riverchain’s private credit facilities are priced at annualised rates ranging from single to double digits, offering an alternative for construction companies that may face limitations in accessing traditional banking financing. To date, Riverchain has supported more than 115 construction projects and facilitated approximately $100 million in deployed capital. Beyond funding volume, Lin noted that economic value is also created when financing improves execution reliability rather than simply reducing funding costs. Risk discipline and underwriting design Risk management at Riverchain is structured around three layers: entity-level assessment, project-level underwriting and ongoing monitoring. Lin explained that an important part of Riverchain’s underwriting logic is the construction data integration within a broader framework designed to capture the complexities of subcontractor operations in large-scale projects. Project assessment incorporates contract terms, payment histories, performance and buyer quality and the legal enforceability of receivables. Where available, financial data is supplemented with project documentation and alternative data sources that can be independently validated. Ongoing monitoring focuses on payment events and project progress rather than static credit metrics. This allows Riverchain to adjust exposure dynamically as project conditions evolve, maintaining disciplined risk oversight throughout the project lifecycle. This approach reflects a deliberate decision to prioritise underwriting discipline and capital preservation over rapid balance-sheet expansion. Technology as an enabler of trust and efficiency At Riverchain, technology functions as an enabler of transparency, trust and operational efficiency within the construction financing ecosystem. Lin noted that the construction industry has been undergoing steady digital transformation, supported by government initiatives, evolving policy frameworks and the growing adoption of construction technology solutions across the value chain. While Riverchain has deployed blockchain applications in several initiatives, the company has since focused its development effort on technologies that deliver immediate, tangible value to project stakeholders. Current priorities centre on data validation, secure workflow integration and improving the flow of financing across projects. Lin emphasised that Riverchain’s approach is technology-agnostic: innovation is applied selectively to enhance underwriting confidence and operational reliability, not to serve as a headline feature. Ecosystem incentives and expansion considerations Riverchain’s model aligns incentives across subcontractors, main contractors and funders. Subcontractors gain faster access to working capital, while main contractors benefit from improved execution reliability and reduced downstream risk. Geographically, Riverchain’s core operations remain in Hong Kong, where the construction funding gap is estimated at HKD 53.8 billion (approximately $6.9 billion). Expansion into Southeast Asia is underway, with Singapore established as a base for evaluation and Malaysia and Thailand under consideration. Artificial intelligence is used cautiously to support data extraction, pattern recognition and underwriting efficiency, but Lin stressed that clean, validated data remains the foundation. Disciplined execution over digital ambition Riverchain’s approach reflects a commitment to technology discipline, focusing on practical application rather than abstract innovation. The firm’s experience demonstrates that digital tools can enhance underwriting confidence and operational efficiency when applied thoughtfully, without overstating their transformative potential. Rather than pursuing sweeping digitisation goals, Riverchain concentrates on selective validation, disciplined underwriting and short-tenor financing to address structural inefficiencies within the construction supply chains. By grounding technology choices in industry realities, Riverchain has built a model that prioritises execution certainty and risk control over scale narratives, while leaving room for disciplined expansion as regulatory, operational and funding landscapes evolve.
