Factoring, Invoice Finance, and Other Debt Financing Options as a Business Opportunity

Blog Post Digital Lending

Pretty much any business faces cash flow interuptions at some point. Often the reason is that it takes up to several months to receive the funds due from the customers. Obviously, suppliers want to receive money as soon as possible to reinvest, work on further streamlining their business, and simply pay their bills. That’s where different forms of debt financing come into play.  

With the growing speed of credit digitalization, tech-enabled fully digital factoring and invoice financing are some of the hottest trends of the lending industry. And rightfully so. But in order to compete in the digital lending environment of today, one needs a superior lending automation system to rely on. In this article, we’ve collected the most common problems business owners face when launching or running a factoring or invoice financing operation and the ways in which TurnKey Lender solves them.

TurnKey Lender Debt Financing software 

Built by a team that has been creating innovative lending products for decades, TurnKey Lender Debtor Financing platform addresses all the automation needs this kind of business may have.  

TurnKey Lender’s AI-powered lending management solution is flexible enough to automate every step of the process for different types of debtor financing. From supply chain finance to invoice financing (discounting), from invoice factoring to purchase order financing to contract financing – we got it covered. 

How TurnKey Lender addresses specific debt financing problems  

Problem: In debt financing, lenders often have no means of safe, quick, and accurate borrower evaluation. This forces them to take on higher risks which leads to a longer approval process and the need to charge higher interest rates. 

Solution

TurnKey Lender Debt Financing platform has AI-powered credit scoring built-in. By default, it analyzes transactions, financial data, and firmographics. The system is built with the strictest security standards in mind and allows for complete decision automation as well as bank-grade pre-screening and risk-based pricing.  

The proprietary TurnKey Lender decisioning engine uses a unique combination of traditional and alternative scoring factors and evaluation approaches to approve more of the safe loans faster. 

Problem: The business owner’s invoice exceeds the available credit line which leads to declining potentially good borrowers. 

Solution

To make sure lenders don’t leave money on the table and don’t take unnecessary risks, TurnKey Lender is enhanced with intelligent automated credit line management. 

Problem 

The need to quickly and effortlessly integrate with third-party services, data sources, and products.  

Solution 

With 75+ pre-configured integrations, TurnKey Lender also easily integrates with other credit bureaus, internal accounting systems of big companies, and online accounting systems which are popular among SMEs. Among other things, these integrations are used for advanced fraud prevention, risk scoring purposes and can be instrumental for cross-selling your financial products. 

Problem: Cumbersome funds collection process. 

Solution

In today’s digital world, collection can also be automated. TurnKey Lender will streamline this process by sending out automated notifications and utilizing its debt collection tools to make sure that no invoice remains unpaid. In addition, the platform easily integrates with popular payment services so lenders can put debt collection and payment processing on autopilot.

Learn more about AI-driven collection scoring 

Problem: Bank-grade software is often hard to adjust to one’s business logic due to its complexity.  

Solution 

TurnKey Lender’s team made sure that the whole platform’s logic can be easily adjusted to any lending operation’s workflows and decisioning flow. The business logic isn’t hardcoded in the system, rather the lender gets a state-of-the-art drag-and-drop business flow editor, rules configurator and web-form designer which allow you to fully customize the processes without having to touch a line of code.  

Problem: If you’re running a P2P business, it can be hard for investors to find the invoices they are willing to finance. 

Solution 

At TurnKey Lender we make a special focus on UX&UI of our products and to suit p2p lenders’ needs, the platform comes with a fully functional peer-to-peer management module with an investor portal and dedicated credit product calculation settings. TurnKey Lender provides the most sophisticated and intelligent algorithms on the market and allows users to intuitively operate that data. In this case, the lender or the investor can filter and fund invoices by selected criteria and risk scores in seconds.  

Problem: The launch of the digital platform keeps getting delayed. 

Solution 

We analyze each project in detail to provide the client with a precise deadline for the deployment of their solution. For unique factoring and invoice financing operations, on average it takes us 20 business days or even less 

Problem: Lack of a single platform for streamlined communication between the buyers, suppliers, and lenders. 

Solution 

With TurnKey Lender’s platform, you can launch your own fully-fledged peer-to-peer factoring operation. And given that you get it as an all-in-one solution, the communication and workflows between the buyers, suppliers, and lenders will work like a charm as it’s a standard part of the system’s functionality, tried and tested.  

Problem: It’s hard to get the business data and meaningful reports out of the system.  

Solution 

Thanks to the built-in online reporting functionality, our clients can monitor their business constantly without wasting time preparing endless spreadsheets and losing business opportunities.

 

Key TurnKey Lender benefits for debt financing companies include and aren’t limited to: 

  • Platform edition specifically tailored to the needs of your debt financing businesses, no matter the type. 
  • Proven track record of work with factoring, invoice financing, and supply chain financing businesses.  
  • The intelligence of the deep neural networks helps approve more of the right loans faster 
  • The flexibility of processes and functionality customization 
  • Time to market can be as fast as one month 
  • Low learning curve for lenders and borrowers 
  • Quick modification of the system to models like purchase order financing, supply chain financing, contract financing, invoice financing (discounting), and invoice factoring 

TurnKey Lender’s award-winning intelligent lending solutions are already used by businesses in 50+ countries around the world. Join the smart digitalization of debt financing. Get in touch and we’ll be happy to show you what TurnKey Lender can do for you.  

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