Digital Factoring

SMEs need to cover their short-term capital needs, however, their invoices have terms up to 120 days. This causes them to look to the traditional financial system for expensive financing alternatives that evaluate the risk of the SMEs and not the large companies.

We offer Working Capital to MSMEs through quick, simple and flexible financial solutions in order to accomplish greater financial inclusion using fast competitive rates.

DF helps the SMEs to improve the economic productivity and gives them access to the financial system, allowing them to grow and create new employment. According to SDGs by 2025 the Company will buy 114k invoices, which translates into a 59% increase in financial inclusion. Focusing on:
• Promote sustainable and inclusive economic growth, full and productive employment. Encourage the formalization and growth of SMEs, including access to financial services.
• Build resilient infrastructure, increase the access of small-scale industrial to financial services.

Small businesses need to cover their short-term capital needs, however, their invoices have terms of 30, 60, 90 and up to 120 days. This causes them to look to the traditional financial system for expensive financing alternatives that evaluate the risk of the SMEs and not the large companies.

* LatAm entrepreneurs cite access to finance as one of the main reasons for business failure. In Peru, 44% of SMEs do not have access to the financial system.
* Most SMEs that have access to the financial system, work with the traditional banking system, which demands high costs and lengthy approval procedures, compared to factoring alternatives.

We are the first fintech to do non-recourse factoring in a 100% digital way in Perú. We buy invoices, bills and professional fees receipts issued by small businesses and entrepreneurs without the need of a credit evaluation; we only evaluate the company that has the obligation to pay, what represents a real financial inclusion. Digital Factoring offers fast competitive rates because follows a seamless online process to validate its client´s payors´quality which reduces non-payment probability.

• Dedicated credit line: Digital Factoring has pre-defined diversified credit risk strategy.
• Tech-based processes: Digital Factoring has a robust technical infrastructure.
• Debtor-centered evaluation: Digital Factoring does not screen it´s clients but rather their debtors.
• Diverse product portfolio: Digital Factoring offers different product lines.
• Hybrid sales model: Digital Factoring follows a hybrid online-offline.

Expected results:

• Fast: Advance payments for negotiated invoices approved in less than 48 houts.
• Inclusive: The companies that are getting financing approvals are those previously left out.
• Fair: Competitive interest rates ranging between 1.5% (PEN) and 1.8% (US$).

The factoring market in Latin America has grown a total volume of USD$ 148 Bn. SMEs account for over 90% of firms in LatAm, employ 63% of the workforce, and contribute to 35% of the GDP.

Our customers are the SMEs who are suppliers of the top 6 thousand companies.

• (PEN): Top 3,000 (Source: Peru Top Publications)
• (US$): Top 6,000 (Source: Peru Top Publications)

According to our data of customers until 2020, around 1,000 SMEs (85% micro enterprises, 12% small enterprises, 2% medium enterprises and 1% large enterprises) used our service and benefit by: 

• Receiving an advance Payment, having their money in 48 hours instead of waiting 30, 60 or 90 days.
• Didn’t pass through any credit evaluation
• Zero risk in case of nonpayment. 
• Didn´t have to worry about the collection of the invoices, that´s our responsibility.
• 100% digital experience. Didn´t have to move from their home or office to do factoring.

We are a fintech specialized on non-recourse factoring. We buy invoices issued by SMEs without the need of a credit evaluation; we only evaluate the company that has the obligation to pay.

DF counts with it´s own platform using APIs and Google Cloud Technology and offer multiple types of factoring services according to each client, depending on the companies needs and sizes. Our online platform works 24/7 and our customers can do factoring from any place and device in a fast, secure and simple way.

Financially, the business model has been proven during our 4 years of operations, growing exponentially.

Digital Factoring is a Peruvian fintech based in Miami, Florida with the purpose of educating consumers and democratizing access to financial services for SMEs, through fast, simple and flexible factoring online operations and share our interest in implementing our growth strategy by scaling our business model into new markets in Latin America and share our view that the bank of the future will be built by being receptive and developing high quality products that really help entrepreneurs and SMEs improve their finances.

Our fantastic employees, long-term perspective, significant expertise in the industry, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further and together provide a long term impact on consumers and on the nation's economy.

We are convinced that from Miami we can have the necessary funding to finance Latam companies, with great returns for US Investors.

With the purpose of offering a 100% digital experience throughout the entire process, reaching 24/7 operations. A unique engine in charge of all Factoring operations and its variants, guaranteeing the security, scalability and high availability of our services.

In Digital Factoring the innovation is focused on three aspects:

• Financial Innovation: Escrow / Asset-backed securities / SAFI

• Workspace Innovation: 24/7 / 100% Digital Experience / Countrywide coverage.

• Software Innovation: Google Cloud / One single engine / APIs

The placements and income have increased exponentially, 125% and 177% yearly from 2017 to 2020, respectively. The placements have reached USD 68 millions and income USD 2.8 millions. Digital Factoring attended 13,353 invoices, 377 clients and 752 debtors. 

In the next five years:

Our company is divided in 5 areas: finance, technology, sales, process and marketing. each of them manage their own metrics for example:

• Annual Placements
• Monthly Placements
• Annual Sales
• Monthly Sales
• Number of actual customers per month
• Number of new customers per month
• Number of new followers per month on social media (digital marketing)
• % accomplish sales goal per salesman
• % advance technology process
• Number of troubles or problems detected during the process.
• Others related to finance.

Today, we are 35 employees working full time and since pademic started we are working in a remote way having good results. All our employees are divided in 5 main working areas:

Management: 1

Commercial:8

Finance: 9

Technology: 9

Process: 5

Marketing: 3

Digital Factoring´s executive team, under the leadership of Percy Augustin (CEO), is responsible of executing Digital Factoring’s business and day-to-day strategy. Today we are 35 employees (50% women / 50% men).

Department: Management

Leader: Percy Augustin (CEO & Founder)

Employees: 1

Description: Overseeing daily business activities, improving business functions, developing strategic plans, and communicating goals.

_ _ _

Department: Sales

Leader: Sofia Valenzuela

Employees: 8

Description: Focused on expanding customer base, managing client retention, geographic and leading marketing strategies.

_ _ _

Department: Marketing

Leader: Carlo Lupérdiga

Employees: 3

Description: Responsible for elaborating and executing all the marketing strategies and activities of the company.

_ _ _

Department: Process

Leader: Eduardo Chávez

Employees: 5

Description: Responsible for ensuring smooth, effective and profitable operations.

_ _ _

Department: Risk & treasury Finance Administration & account

Leader: Laura Guevara

Employees: 9

Description: Responsible for ensuring efficient financial management and control to support all business activities.

_ _ _

Department: Technology

Leader: Néstor Ojeda

Employees: 9

Description: Leads and implements company’s technology strategy and product feature development.

We believe that success at Digital Factoring comes from two factors: our people and our culture. We believe that brilliant people operating in a great culture will produce the best performance. Our culture is our DNA, it defines who we are, how we operate and how we handle disagreements among ourselves. We operate, hire, develop and promote people based on the values below.

1. Never settle: 

Digital Factoring is for those who always strive for excellence, for those who
want to become the best in the world at what they do, for those who would
never settle for less.

2. Think deeper:

We are open-minded, we listen and we are always searching for the truth.
Do it!: We stopped listening to excuses a long time ago, we care about results. We believe that the effort, determination, skill, intelligence and courage can break through almost any wall.

3. Deliver WOW:

We love creating great products, we love delighting our customers, we love
turning the complexity of a chaotic world into the simplicity of a beautiful
solution that truly solves customer needs.

As Digital Factoring, we are looking forward to become a "Solver" and join the MIT-backed network to receive the monetary funding and most important the  support from the members  to build the partnerships we need to accomplish our growth strategy (expansion plans).

Key Objectives / Intended goals:

1. Open a funding raise to seek USD$ 2.7 million in equity to implement our growth strategy in Latam.

• Scale our solution by building the partnerships needed.

2. Get more visibility in Miami´s fintech ecosystem to find the correct partner.

• Accelerate our growth strategy by creating a communication plan for fundraising and implementing a growth hacking strategy.

3. Build a go to market strategy 

• Validate the impact and business model of Digital Factoring. Defining a complete Go to market strategy for our second stage: " Geographic Expansion: Expand operations to Colombia"

We consider that our fantastic employees, long-term perspective, significant expertise in the industry, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further and with a new partner provide a long term impact on consumers and on the nation's economy. This means count with partners that can support us to start with our expansion plans doing an adecuate market fit  and communication plan with strategies that can help us introduce new financial services and expand our business model to other Latin American countries starting in Colombia.

Digital Factoring is a Peruvian fintech based in Miami, Florida with the purpose of democratizing access to financial services for SMEs, through fast, simple and flexible factoring online operations and to share our interest in seeking a new partner that can help us  implement our growth strategy by scaling our business model into new markets in Latin America and that also shares our view that the bank of the future will be built by being receptive and developing high quality products that really help entrepreneurs and SMEs improve their finances. 

We can consider potential partners such as: organizations interested on private equity, MIT Faculty for the support to accomplish our goals and any other Solve Members interested on investing on our company.

Digital Factoring helps the SMEs to improve the economic productivity and gives them access to the financial system, allowing them to grow and create new employment. According to SDGs by 2025 the Company will buy 114k invoices, which translates into a 59% increase in financial inclusion. 

To implement its growth strategy, Digital Factoring open a headquarter in Miami to get funding from international investors to finance Latin American companies having great returns and low risk. The first step of this strategy is starting in Colombia because the country has a great potential market, and with the implementation of the electronic sales invoice as a security, it is expected that factoring growth exponentially as Peru in 2016.  The second step is to continue to grow its services under a 100% digital offering with Google Cloud technology. The services we are planning to launch are: 

Digital Crowd: To offer  the services of crowd factoring, crowd lending and corwd leasing. 

Digital Collection: To offer the service of invoice collection in a 100% digital way.