Crowdfactoring has just entered the scene, and it has already become an attractive solution for SMEs, helping them find short-term capital by selling their invoices.
This financing model is highly beneficial to both SMEs and investors, especially if they choose the best-of-breed, fully interactive, and secure crowdfactoring platform to handle the entire process.
Crowdfactoring is a game-changing form of business financing that allows companies to sell and assign a large number of invoices to investors at a discount.
The very idea of crowdfactoring is rooted in invoice factoring, which helps businesses find short-term capital for selling their receivables. Still, invoice factoring is not considered a loan.
Instead, it is a way to sell invoices to a factor for an additional fee. Crowdfactoring follows the same business scheme, but it is a more complex financing model than invoice factoring as it includes external investors in the invoice financing process.
There are four major roles in crowdfactoring that close the financial structure:
A cutting-edge digital platform allows the factor to create a seamless connection between investors and companies selling receivables (suppliers).
Both investors and suppliers will benefit from a simple software-as-a-service (SaaS) solution that offers quick, safe, and entirely transparent invoice handling.
Aside from having full control over secure and short-term investments, SMEs (suppliers) will experience a broad range of advantages of a crowdfactoring platform. For instance:
The Stage11 Crowdfactoring platform features the most advanced technology for the best SaaS experience in the financial sphere, making it the number one choice among clients from the emerging markets.
Besides a high-performance system for a seamless connection between all the four end participants of crowdfactoring, Stage11 offers a stellar user experience and fosters business growth through the following features and benefits:
Stage11 stands out from the crowd for its cloud-based and white-label solutions delivered to our clients across the Middle East, Africa, and Europe.
The cloud-based software-as-a-service model is packed with benefits, primarily since it helps reduce your ‘time to market’ (TTM). Besides, the cloud-based concept allows you to use your crowdfactoring software without time-consuming installations and upgrades while enjoying rich integration options and enhanced scalability. A stable Internet connection is the only requirement.
The best thing about choosing a cloud-based SaaS solution is that you don’t pay for the ownership of the platform but the service you’re using. While installation and initial customization are a one-time cost, ongoing maintenance means paying a small monthly fee as long as you’re using the platform.
Our white-label crowdfactoring solution allows you to brand the platform as your own. You can later use it to increase your brand’s visibility while harnessing the benefits of our platform’s state-of-the-art innovation and flexibility.
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