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juni 2021

SOCIAL VALUE ADDED OF THE YCS CREDIT SYSTEM

By | Berichten

SOCIAL VALUE ADDED OF THE YCS CREDIT SYSTEM

There are 5 parties that contribute to the Social Value Added of the YCS credit facility. The Social Value added follows from the collaboration of the 5 parties.

The parties that contribute to the good functioning of the YCS credit system are:

  1. The SME
  2. The Community (for example a harbor authority with its SME clients)
  3. The FX trader and/or payment account provider
  4. YCS, the credit platform

In the old banking logic there were only 2 parties: the bank and the client.

The YCS credit system consists of a number groundbreaking characteristics:

  1. The credit system unburdens SMEs by digitizing financial and accountancy activities due to the credit.
  2. The Community has an interest in the proper functioning of its SME community, so that more SMEs receive better financing.
  3. The FX trader and/or payment account provider have an interest in more currency exchange. The SMEs have a currency exchange advantage compared to banks, which provides a cost advantage.
  4. At YCS, the credit is revolving.  After a few months, the reality is that factored invoices are paid instantaneously (within a week from invoicing).

 

Thanks to the credit system, the cooperating partners provide a very significant advantage in liquidity and profitability for SMEs.

The credit system has received the following qualifications.

Klaus Schwab states in “The Fourth Industrial Revolution” that further automation and hyper-connectivity through cyber-physical systems is to come. The physical systems are defined as infrastructure such as payment accounts and e-invoicing, FedEx, etc., that are linked to lending by cooperation partners in the credit organization

Santander and Moody designed the credit system for the future. Below is a blog on the ABPaymentflows website. With its credit system, YCS meets all the requirements that Moody and Santander have set.

https://www.abpaymentflows.com/comment-on-the-article-the-future-of-small-business-lending-as-posted-in-december-2016-by-the-moodys-analytics-team- in-risk-perspectives/

The cooperating partners do not have an active role in lending. The system functions in an automated way. As shareholders an increasing return is benefitted from.

The system is designed to fulfill the banking function on behalf of the community. The FX trader and/or payment account supplier contributes crucially to the system by offering its Cash pool/ payment systems without which the system cannot work. As a shareholder the FX trader or payment account supplier may expect increasing returns.

The FX trader and/or payment account supplier will have the opportunity to serve a new, very large market without any effort as the FX trader and/or payment account supplier enhances the quality of its services for her existing customers and gets immediate exposure to new customers. 

The effects for the P&L account are large because of the large market served by the IHF credit.

Companies that operate as FX trader and/or payment account supplier are invited to join the collaboration via their own platform. Dual onboarding will take place with 1) the FX trader/or payment account provider for the payment accounts and 2) with the platform of YCS for the credit system.  

See an elaborate invitation on our website.