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Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

news.ycombinator.com

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Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#21

Post by jon-fry »

forgotmysn wrote: post #16
jon-fry wrote: post #13

Earlier quoted context omitted.

Those are companies providing consumer loans placed in a ecommerce checkout workflow. We're focused on business funding options placed in a broader set of workflows. Think lending services in workflows based around payments, procurement, invoicing, ect.

so is this more of a cashflow tool? you guys are an in-app float?

You can do that, we have several customers launching a product for this purpose.

You can also build services for a broader set other use cases. Including financing purchases like inventory, equipment, supplies, inventory, real estate, ect. Or just more general purpose funding, it just depends on the user base and their needs.

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#22

Post by ajsharp »

chuinard wrote: post #14

I like the idea but am irritated that there's upfront Pricing involved. If my software is sending you customers for loans I should be sharing a commission with you and that's that. Why do you need money from me to let me send you prospects?

That would be one way to model such a service, but certainly not the only way. Their pricing optimizes for a particular customer profile, and that may not be you.

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#24

Post by bberenberg »

jon-fry wrote: post #20
chuinard wrote: post #14

I like the idea but am irritated that there's upfront Pricing involved. If my software is sending you customers for loans I should be sharing a commission with you and that's that. Why do you need money from me to let me send you prospects?

Definitely understand where you’re coming from, I think you're looking this through the lens of the way these types of programs have worked in the past. With us, these are always your customers, we're just allowing you to launch your own capital program for them. We aren't having you "send us prospects." Instead, we're providing you the infrastructure so you can get them funded them on your platform. We keep them in…

Not sure I understand this. When someone chooses to factor with "me" (Lendflow under the hood) is it me making the factoring revenue or you?

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#26

Post by jon-fry »

devemanc wrote: post #25

We're a Canadian company serving Canadian customers, though at some point we may expand into the US. Are you a fit for us? If not, what are our alternatives?

We can help you serve Canadian customers as well. You are indeed a fit!

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#27

Post by jon-fry »

CapriciousCptl wrote: post #23

Very cool. I'm curious-- 1. How do you vet the lenders? Anything keeping them on a leash so they don't go too hard on past-due accounts? 2. Is the financing generally recourse to the owners? 3. Who's your biggest competitor?

1. We do vet lenders. We focus on bringing on the lenders with the best service, tech and reputation. We don't bring bad actors in the space, and if they don't service the borrowers well they are removed from the platform.

2. There are both recourse and non-recourse options.

3. Stripe released a product with some similarities recently. On the marketplace side we compete with companies like Lendio and Fundera.

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#28

Post by jon-fry »

nrmitchi wrote: post #12
dyeje wrote: post #8

Isn't the field for this a bit crowded at this point with players like Affirm, Afterpay, Klarna, etc?

AFAIK those players are all consumer lending services. Ie, I want to buy a Peloton, and spread it out over 36 monthly payments. This sounds more like business short term lending. Ie, I have 100k in orders, but need 20k to buy materials up-front. Or I have 100k in outstanding payments due in 30 days, but I'd rather get 95k right now.

that's right!

Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services

#30

Post by ab_testing »

Who do you think are your customers. As I understand, using your API’s anybody can start a small business lending program. Ok but then how do your customers make money. Do they do collections on lenders or do they just generate leads and pass them off to lenders?
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