Credit in the form of an APP
Customers who are rejected by regular financiers (banks in the first place) for reasons of lack of profitability, a lack of collateral or a lack of resilience, will in many cases qualify for the IHF credit through modelling historic events and performance based on a statistical analysis.
The application works, after the identity check, establishing the nature of the activities and modelling the track record through an initial qualitative test on management, nature of the activities and track-record exclusively on statistics.
The customer creates an account, logs in, uploads his accounts and the application qualifies the customer fully automatically on the basis of the quantitative data. After an introduction and the qualitative check, the definitive connection to the app follows and the revolving IHF credit is granted. After that the invoices are issued and sent out, full automatic credit pre-payment follows systematically.
The benefits on a row:
• For convenience to be understood as factoring. But then “factoring 2.0”, based on big data. All the advantages of the IHF credit and low costs are so implied
• Statistical qualification based on history rather than inconsistent discretionary and costly qualitative assessment by bank employees
• Off Balance structure whereby credit criteria are not improperly influenced by Governance principles (with higher return requirements as a result)
• Conversion of the bank overdraft facility into the flexible, higher ranging and moving IHF Credit (automatically moving along with the turn-over development)
• Human ware supports the credit application; the result is that a “Agricultural Credit Cooperative” – like community is created with many further potential applications
• Focus on credit size between Euro 0.4 – 2.5 million
• Attractive not only for banks but also for regional development companies and port authorities and sector-driven institutes with a broad SME client base
• Risk reducing features of the app (blocked account, pre-financing ratio with buffers for insolvency, possibly a credit insurance) guarantee that there is a negligible risk for the funding whereby the interest rate % on the IHF credit for SMEs is spectacularly low and eventually may result in even lower interest rates over time
• On balance a much more efficient credit due to far-reaching digitization and an efficient follow-up; online and real time, Off Balance and suitable for banks, finance companies and institutions with a specific (regional or institutional) interest