In this episode of Fintech for the People, guest Fernando Olloqui, founder of Licify, dives into the massive yet deeply inefficient construction industry. He shares his firsthand experience with the financial challenges faced by subcontractors, a journey that led him from the brink of panic over unpredictable payments to building a fintech solution designed to solve these systemic problems. Fernando explains how Licify is seeking to bring an outdated industry into the digital age.
Fernando details the nightmare of cash flow management for small contractors, where winning more business can paradoxically lead to financial ruin due to a severe negative cash flow cycle. Licify addresses this by embedding financial services directly into the construction procurement and payment workflow. The platform streamlines everything from bidding and compliance to billing and payments, reducing the time it takes for subcontractors to get paid from an average of two months to just two weeks. This creates a “win-win” for the entire supply chain, de-risking projects for builders and providing financial stability for contractors. Looking forward, Fernando shares his vision for Licify to evolve from a system of record to a “system of action,” using AI to automate complex processes and further boost efficiency.
Episode highlights:
- Addressing significant working capital challenges for subcontractors in the construction industry.
- Streamlining and accelerating payment cycles from months to weeks.
- Digitalizing the historically manual procurement and compliance processes in construction.
- Integrating embedded finance tools like invoice discounting directly into construction transactions.
- Connecting major contractors with a vast network of suppliers and subcontractors.
- Leveraging AI to automate administrative tasks and enhance operational predictability within the construction supply chain.
- Building resilient teams within challenging industry landscapes.
- Transforming the construction sector towards greater productivity and digitalization.
To learn more about Licify, visit their website. Learn more about Accion Ventures on our website and LinkedIn.
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