Business Model

Start-up summary

The IHF credit is an App related financial and organizational innovation. An important characteristic is that the credit organization can be arranged flexibly. Ecosystems arise and develop under the influence of the growth of the lending exposure.

Communities finance their members via the platform (App) on which many collaborating partners are united who independently offer their core business (forex and other Apps, see also

ABP has granted the exclusive license to YCS NV in which the activity takes place.

Business model

YCS, a data exploitation company in a platform structure, started out of the ambition to give SMEs easier access to funds for growth opposed to the lengthy and non-transparent processes that they have to go through when applying for funds with banks.

  • The activity is characterized by its quick real-time assessment. It modifies exposure to events, meaning that it will act agile on real-time information. Risks are detected – and precautionary measures are taken – prior to the occurrence of events.
  • The distinction between YCS and classic banks is that classic banks are studying events and measure risk and statistical properties of these events.
  • YCS also distinguishes itself from factoring as factoring studies exposure to events and statistical properties of events.
  • The application of the IHF credit leads to a significantly higher asset base at the SME. This leads to improved credit conditions compared to bank overdraft accounts and Factoring.

Business case

  • YCS recognizes a higher asset base of the SME and can give up to 3 times more IHF credit in a revolving form as a bank.  This leads to a strong liquidity improvement for the SME.
  • The IHF credit is approximately 10% cheaper than Factoring. The IHF credit has comparable payment flows to the SME. The invoices and payment account remain the property of the SME.
  • The IHF credit will have an annual interest rate of 5% to 6% depending on funding.

Calculation example

  • If the entire growth of factoring in the Netherlands had been financed by the IHF credit in 2018, the positive effect on the P&L of the Dutch SMEs would have been € 920 million (calculation based on Rabobank report).
  • The overdraft credit account base in the Netherlands in 2018 amounted to more than € 16 billion. If 10% (€1.6 billion) of SMEs had made use of the IHF credit, the liquidity of these SMEs would have increased by approximately € 5.3 billion. Applying the IHF credit, € 3.6 billion in additional financing would have been available for SMEs.

Collaborating partners on the platform

  • The organization of the platform takes place in Dedicated Communities. Lending takes place via this platform. The Credit is STP (Straight Through Processing) and is therefore unlimited scalable.
  • Community partners such as providers of e-invoicing and accounting packages, port companies, associations of SMEs, niche banks such as Riverbank (Benelux) and NIBC, KNAB and NEOS (the Netherlands) can also finance existing and new customers through a Dedicated Platform.
  • A condition for the start of lending is the participation of a bank that can make customized & on-demand payments.

Banks that currently finance SMEs expand their core business with the IHF credit by founding a Community.


  • The Funding works independently via a vascular system. The funder therefore remains the boss in-house and works on the basis of an agreed protocol. The funder is linked to the platform and works customized and on-demand.


Applying the IHF credit ensures that the credit market grows to the benefit of the SME market. SMEs that are currently financed through Factoring receive significantly lower financing costs (and therefore realize higher profits). All other SMEs also receive a higher credit than currently made available by banks due to the larger asset base. This higher credit base generally leads to an increase in growth amongst SMEs. All cooperating parties that work from their core business, including the funder, will see their exploitation improve as a consequece of this disintermediation drive.