Launch of the IHF-Credit

By 9 januari 2017What's new

SME Finance – Small Business Owners and Investors Well Served

Is there a new way for small business owners to meet their working capital needs and grow their companies in a flexible way, at low cost, with automated systems and without the whims of discretionary bank processes? Yes, YCS facilitates the IHF-Credit, an advanced form of platform based invoice financing.

With the introduction and commercial roll-out of the IHF-Credit Your Capital Support (YCS) creates a symbiotic relationship between investors and SMEs. For funding investors, YCS provides an opportunity to invest in local SMEs with next to nil / low risk and fair returns. For small business owners, YCS provides invoice based corporate roll-over loans that help them meet working capital needs and grow their companies.

The IHF-Credit – Lending to SME companies at break-through interest levels

SMEs receive financing from YCS in the form of an advance of 85% on outstanding invoices—calculated to a fixed amount and tracked per batch of invoices. The batch is made after AI has been applied. The SME pays YCS an interest of 6.5% (Annual Percentage Rate) ( current interest rates as per 27-8-2017) over the advance amount, over the period during which the invoice is unpaid. Investors receive a portion of the interest rate as remuneration.

What is new?

  • Debtor portfolio financing WITHOUT transferring ownership of invoices
  • Detailed insight into an SME’s debtor portfolio and debtor payment behavior
  • Professional (Human ware) support for SMEs to ensure invoices are legitimate and paid in time
  • Real time monitoring of invoices and payment speed, leading to DSO calculations and alarm signals. Besides the health development of the SME is monitored on a continuously daily basis..

What are the main differences with actual invoice lending models?

1. Old School financing vs New School financing resulting in easy access and low interest rates

Old School invoice financing versus YCS

  • Push   versus   Pull
  • Hierarchy   versus   Symbiotic
  • Central & Global   versus   Local & Global
  • Stock of info   versus    Flow of info
  • Profit Maximisation   versus   Symbiotic and SME-focus network partners
  • Possession   versus   Service
  • Corporate   versus   Community
  • Personnel /management   versus   ZZP, strategic alliances
  • Assets   versus   Access
  • Nationalism versus   Global communities
  • Work-life balance 24/7   versus   Work-life balance lifetime
  • Fragile   versus   Anti-fragile

2. Fintech 1.0 versus Fintech 2.0

Whilst Fintech 1.0 has brought only minor disruptions to the banking market, mainly in the areas of payments, credit and personal financial advice, advances in technology and growing investment in fintech set the scene for more radical change like in the case of the YCS business concept[1].

It appears from the literature that a huge percentage of the SME financing need, ranging from 25% to 50%, is related to invoice financing. Therefore, to crack the code of efficiently serving that specific financing segment, leads the way to serving the SME business lending needs best. In this case Fintech 2.0 means a “seamless specialisation” across a core element of the value chain whereby several providers combine to deliver a cheaper and easier-to-use proposition to end customers in the field of Invoice Financing.

What is different.

The YCS online platform is the central hub from which YCS financing is managed. It is a completely web-based platform that consists of two connected environments[2]:

The Invoice Managers: Online invoice management software—used for sending, tracking and following up on Client invoices. The platform of The Invoice Managers is accessible by:

  • Clients: to submit, track and comment on invoices
  • Client Debtors: to view and comment on invoices
  • Human-ware of The Invoice Managers: to track invoices and perform follow-ups
  • Human-ware of YCS: in rare occasions to review invoices, process, disputes

YCS-Financing: Online financing software—used for approving and granting loans, managing clients, and administering funds. The backbone of YCS-Financing is a secure, replicated environment based on blockchain technology.

The two environments are structurally integrated, but functionally separated.

Next steps-The IHF-Credit Fueling Economic Growth

YCS will launch its service in September this year with a limited number of clients. Collaboration with Belfius Bank of Belgium secures a smooth and secure start. In the fall of 2017 YCS expects to enter into business relationships with different funding institutions to roll-out massively the IHF-Credit. YCS is eager to share the granting of IHF-Credits with specific interest groups starting a series of “YCS-local” financial companies. Also major banks have expressed their interest in the new possibilities we offer them. These groups of entrepreneurs, financiers and (semi-)government entities may want to run their own IHF-Credit activities on behalf of their focus clients (with common features like geographical concentration, adherence to a specific sector or similar communal interests). As the risk capital and leverage financing in the “white label” structure is provided for by the relevant financial institution and/or the YCS structure, in the case of a local YCS a limited amount of risk capital should be provided for by the local sponsors.

In sum, SME companies, Investors and the Society at large in the form of potential economic growth are all bound to benefit from the IHF-Credit!


Summarizing (What’s in it for me?)


  • Revolving IHF credit facility that automatically adjusts with turn-over swings
  • Symbiotic relationship between platform and SME instead of a hierarchical commercial dependency relationship
  • Break-through low interest rate levels due to risk reducing platform technology and business modelling
  • Automated credit process leading to quick and independent monitoring of the IHF credit avoiding undue human discretionary involvement
  • SME makes part of an economic ecosystem comprising of local or industry/sector interest groups adding network benefits and increased business know how
  • Combination of digital processing and human-ware enhancing the quality and stability of the ecosystem

Local investors & (semi) governmental entities and Banks

  • A new opportunity for banks to service the PME’s with financing with acceptable interests but also with acceptable costs and thus again profitable
  • A symbiotic relationship between local investors & (semi) governmental entities and Banks improving the service level to the SME’s
  • Opportunity to invest in local SMEs with next to nil / low risk and fair returns
  • Opportunity for (semi) governmental entities to concentrate on and boost growth and business stability of its SME cluster of interest reducing their cost level and extending their lending potential
  • A possibility for the European Investment Bank and Central Bank to fund the real economy in a transparent way and with a new instrument to monitor the industrial hart beat.

Society at large (potential of economic growth, business stability, cost level and employment)

  • Stability of the business environment leading to higher potential growth
  • Lower business cost level leading to increased societal prosperity
  • Over-all competitiveness increases


[1] “The Future of Small Business Lending” as posted in December 2016 by the Moody’s Analytics team in “Risk Perspectives” (April 2017) .

[2] A combination of Software and Humanware promises to be the winning structure for successful business models