It is our mission to offer the SME, and especially a part that has poor access to credit, the highest quality credit at the best price through the YCS platform.
Our strategy to achieve this is on the one hand, the new IHF credit form and on the other hand, the execution of various tasks and related services for SMEs, which are connected to the platform.
This new form of organization with existing and new service providers for SMEs, mostly active through an App, reduces the operational costs of the SME, both with regard to the credit itself and for related services.
The 3 cooperating parties in the platform are the following:
A “financier” (not a commercial bank) who makes the funding available, organizes and executes customized and on-demand payment orders. This is facilitated by the STP (Straight Through Processing) implementation.
The financiers that naturally qualify for this role are institutions established to finance companies or SMEs. They can make enhanced use of the invoices asset base of the SMEs through the low risk profile of the IHF credit. The IHF credit excludes payment risks, which means that funding can be offered with a low mark up. In addition, own customers within the core business and many new customers can be served with the IHF credit, making use of the cross-selling potential.
Payment account providers. These can be provided by any party that offers payment accounts.
Parties that carry out currency exchange services. These parties have a dual function because they can both carry out their core business (currency exchange services) and open up payment accounts (because they are necessary for carrying out the core business).
Therefore, qualifying SMEs who log in to a specific party that provides their currency exchange services will simply be provided with a payment account for the IHF credit due to the already existing identification status of the SME (“onboarding for the IHF credit”).
Conversely, qualifying SMEs connected to the platform with a need for currency exchange rate services can be directed to this service supplier’s app. In this way they can easily be connected to the services of the currency exchange rate service.
The cooperating parties can serve their own customers with the IHF credit via a dedicated platform made available to them. This as a means to enhance customer loyalty and to prevent that customers may log in in elsewhere.
Parties that can further connect to the platform are the following:
E-invoicing parties. E-invoicing forms the basis of the credit service. Customers can log into any dedicated platform if they already have e-invoicing. There is an accounting package behind any e-invoicing service. The IHF credit can be linked to the accounting package via the dedicated platform for the community for qualifying SMEs.
Therefore, customers who do not yet have e-invoicing must have a choice on the platform to choose a specific e-invoicing party. In addition, e-invoicing service providers can set up a community for their existing customers (“dedicated platform”) and thereby also offer their own customers the IHF credit.
Fintechs with services other than credit can also offer the IHF credit service to their qualifying customers via their own dedicated platform. For example, administrative unburdening by digital App services. Here too, cross-selling can take place between the IHF credit and these services.