BuildFi / Products/ Sub-Payment Facility

Sub-Payment Facility.

Subcontractors get cash against their certified progress claims in 24–72 hours. We collect from the general contractor on the contractual due date. Sharia-compatible Tawarruq + Hawala.

FLAGSHIP · PHASE 1ADGM FSRA REGLAB24–72 HR ADVANCE75–90% LTV

P / 01 — FLAGSHIP · PHASE 1

Advance 75–90% against certified IPCs in 24–72 hours.

The subcontractor uploads the master subcontract, the GC counterparty data and the certified Interim Payment Certificate. Our Alternative Data Engine scores the GC and the project. We wire 75–90% of the certified value to the sub's bank account within 24–72 hours.

The GC pays the original contractual amount on the original due date — directly into BuildFi's Controlled Collection Account at the SPV. We retain principal plus fees. The residual flows to the sub at settlement.

This is not balance-sheet factoring. It is project- and GC-level underwriting on certified claims, structured as a Sharia-compatible Tawarruq cash facility paired with a Hawala assignment of the GC payment right.

Advance rate75–90% of certified IPC value

TriggerCertified Interim Payment Certificate or progress claim

Time to cash24–72 hours from submission

Discount fee3.0% at origination on advance amount

Holding fee2.0% per 30 days, accruing through tenor

Tenor60–150 days · weighted-avg ≈ 90 days

Licence pathADGM FSRA RegLab (Phase 1) → Cat 3C FSP (Phase 2)

CollectionControlled Collection Account direct from GC

RecourseGC payment undertaking + Hawala + PDC + ADGM Courts

Sharia structureTawarruq cash facility + Hawala assignment · AAOIFI Std 30 + 8 + 7

Ticket$50K – $750K per advance

Concentration capsGC ≤ 20% · developer ≤ 30% · sub ≤ 5% · project ≤ 10%

Why this works

When the claim is certified, the GC is the underwrite.

Advantage 01

Certification is a third-party signal.

An IPC signed by the project quantity surveyor and the main contractor is a pre-verified claim against the developer's funded escrow — the strongest contractual signal in MENA construction.

Advantage 02

Escrow-direct collection.

The GC's acknowledged payment undertaking routes the IPC payment to BuildFi's Controlled Collection Account, not the sub's operating account. Funds clear into the SPV before they hit the sub.

Advantage 03

Sharia-compatible by construction.

Tawarruq cash facility plus Hawala assignment of the GC payment right delivers factoring economics within an AAOIFI-aligned perimeter — without selling debt at a discount.

Economics · indicative

Per-deal economics on a 90-day advance.

$200K advance against a $250K certified IPC (80% advance ratio) over a 90-day GC payment term.

Discount fee at origination: 3.0% × $200K = $6,000. Holding fee: 2.0% per 30 days × 3 months = $12,000. Gross fees retained: $18,000 (≈9% on advance, ≈36% effective APR equivalent).

Cost of capital at ≈15% APY: $7,400. Expected credit loss at 1.5% of advance: $3,000. Servicing & opex: $1,500. Net contribution per deal: ≈$6,100. Capital recycles ≈4× per year.

Gross fee yield on advance≈ 9.0%

Effective APR equivalent≈ 30–36%

Cost of capital target≈ 12–15% APY (SPV)

Expected credit loss target< 2.5% blended through cycle

Net annual yield on deployed≈ 12–18% net

Funding$5M ADGM SPV (Tawarruq) Phase 1 · $10M+ institutional Phase 2 · ABS Phase 3

All numbers indicative. Forward-looking only. No credit is being offered at this time. Subject to FSRA RegLab admission and Sharia Advisory Board pre-clearance.

Confidential. Indicative only. Not an offer or financial promotion. Restricted to Professional Clients (ADGM FSRA definition) or equivalent accredited investors. Capital is at risk. Forward-looking statements are estimates and not guarantees.