iFactor

Idea

Introduction

Even before the Covid 19 crisis, the lack of working capital was the number one pain in SMEs' growth.

Worldwide, although 4 out of 5 new jobs are created by small businesses, over 90% of SMEs still have insufficient access to funding with a gap of over 2.7 trillion Euro with most SMEs considered low ticket size by the banks, with high processing and underwriting cost.

The post Covid 19 economic crisis will make this situation even worse.

iFactor is an alternative SME lending marketplace where SMEs can sell their outstanding invoices or apply for loans while banks and private investors can bid for these applications.

Developed as a change of paradigm solution, good for growth economic phases, best fit in times of crisis, iFactor is shifting the lender deal orientation towards the borrower, the value creator entrepreneur.

iFactor’s high degree of novelty comes from using proprietary technology in the KYC and underwriting process, digitalising the lending & factoring procedure.

Monetisation strategy

iFactor currently employs a success flat fee on both sides, sellers and buyers.

Revenue Stream I 2020:

1. iFactor Hybrid Marketplace (Lending Platform - Workflow Engine and Processes)

In addition to the above model, by which we offer the marketplace, next year we will sell our other home-crafted technological products as white labels, under a SaaS model, generating extra revenue streams.

Revenue Stream II 2021:

2. iFactor PURE Analytics - Alternative Data AI Credit Scoring.
3. iFactor Advanced KYC - KYC distributed data.
4. iFactor Setl - PSD 2/ Open banking Automatic Settlement engine.

In line with this monetisation strategy, clients can also opt to pay additional membership fees and gain lower transaction fees and will be able to access services like cash flow consultancy, collection, insurance etc.

Currently iFactor offers a single invoice factoring product but the platform was designed in a modular way for capabilities of loan applications too.