Invoice Trading as Alternative Financing

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ISSUE #63 – Operating in the invoice financing space, Incomlend looks to connect international funders, buyers and suppliers. Dimitri Kouchnirenko, Founding Partner shares more about the business and how Singapore factors into the company’s business.

 

French Chamber FintechIncomlend is an invoice exchange for businesses and private capital in multiple countries and multiple currencies. How does that work?

The Incomlend platform is a marketplace where funders with capital can purchase trade receivables (invoices due for payment at a later date) from suppliers at a discount.

Suppliers post their invoice funding requests on the platform, visible to all funders. Invoices can be posted in different currencies and from different countries.

Funders can purchase all or part of the invoice from their multi-currency eWallets. Once the invoice has been fully funded (usually in less than a day), the funds are sent to the supplier on a non-recourse basis. At payment maturity, the supplier’s client pays Incomlend directly and funders receive their capital plus profit from discount.

As a result, suppliers cash in their invoices on the spot (without having to wait for their client’s payment) while funders obtain profit at invoice maturity.

The Incomlend platform is a marketplace where funders with capital can purchase trade receivables (invoices due for payment at a later date) from suppliers at a discount.

 

Seeing that Incomlend’s platform operates on a global level, how does being based in Singapore help the business?

Singapore is a highly attractive place to conduct business in, especially for a FinTech company.

The Monetary Authority of Singapore (MAS) backs and promotes the FinTech sector in Singapore, the ambition being to become a major global hub for FinTech companies. The MAS also provides a flexible and advantageous environment for FinTech, involving major financial institutions for the regulatory sandbox.

Furthermore, Singapore is a major global trading hub and the gateway to Asia. Considering the multi-country operating model of Incomlend, this is a significant advantage when addressing international supply chain needs of our clients.

Finally, Singapore has a dynamic and open business environment, creating more and better opportunities for any company.

Singapore is a highly attractive place to conduct business in, especially for a FinTech company.

French Chamber Fintech

 

Besides Singapore, which markets do you see fit for your business?

Our ambition is global and our solution will be deployed in several waves. As of now, we are already present in Hong Kong, with both funders and suppliers.

Our funders come from a large variety of countries, including in Europe and Asia. Generally, markets with low interest rate environments are fit for Incomlend’s offer, allowing funders to generate higher returns.

Regarding suppliers, we are driven by geographies where we can help businesses maintain and grow their exports. Apart from Singapore and Hong Kong, we are targeting other major manufacturing and exporting countries such as China, Taiwan, India, Thailand, Malaysia, and Vietnam. We are also approaching European exporters. Next waves will cover North American suppliers, Africa, the Middle East, and Latin America.

Our ambition is global and our solution will be deployed in several waves. As of now, we already are present in Hong Kong, with both funders and suppliers.

 

What are your unique selling points?

Incomlend’s unique selling points cover three main types of users: suppliers, buyers and funders.

We offer suppliers fast and flexible access to receivables funding, without collateral or recourse. Our funding services include credit insurance on suppliers’ buyers in one simple package. Suppliers can grow their export activities by funding their cross-border invoices in multiple currencies and having access to a large international pool of funders.

We offer buyers (clients of suppliers) a fully secure and structured framework to service, fund and optimise the different tiers of their international supply chain. Our services allow buyers to secure stability of supplies and alleviate the financial burden of supporting their suppliers.

We offer funders unprecedented access to worldwide funding of receivables, fully protected by credit insurance from a global leading insurer, with potential income levels in double digits annually.

 

What are the next steps for your company?

Along with its international expansion, the company aims to secure partnerships with major financial institutions and business service providers in Singapore to significantly scale up its client base as well as the overall value of funded trades on the platform.

In terms of platform developments, future plans include automating the funding decision making, automating the KYC/AML processes (Know Your Customer, and Anti-Money Laundering), optimising reporting dashboards, developing new digital invoice exchange protocols, optimising automated reconciliation protocols, deploying on mobile devices and much more. Incomlend is also working on third party services API (Application Programming Interface) integration as part of our plan to establish major partnerships.

Along with its international expansion, the company aims to secure partnerships with major financial institutions and business service providers in Singapore to significantly scale up its client base as well as the overall value of funded trades on the platform.

 


Incomlend is a global multi-currency marketplace where funders with excess liquidity can purchase trade receivables from suppliers at a discount. Suppliers get cash on the spot, Funders get profit from discount. Suppliers obtain funding without collateral or recourse. Traded invoices can be domestic or export based from multiple countries. Funders investments are protected by international credit insurance.

 

Interview with Dimitri Kouchnirenko, Founding Partner of Incomlend

Published in FOCUS Magazine — Issue #2 2017 “Future Economy”

 

 

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