This may be a naive question: is this a white labelled Klarna-like service?
Klarna is consumer focused.
Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
31–39 of 39 posts
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#32Very interesting. I'm working on products for embedding lending into various niche B2B transactions, especially things that are considered "lumpy" to cash-flow, examples are recruiting, software downpayments, deposits.
Have you come across anything like your product that exists in EU/UK?
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#33> It can take a team of 10 at least a few million dollars and 18+ months to get to market with their program.
It can, but it doesn't have to.
Also: they key to running a lending business is risk management, and if there is any element that has led to lending businesses fail it is to appreciate the degree to which risk management skills dominate all others including technology skills.
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#34This is confusing:
"If you build your own funding service, you simply pay a subscription for using our tools."
If a platform uses your tools, but not 'your' capital, does it still pay Lendflow a 2%/3%/5% fee on all the loans it issues? Or does it only pay Lendflow the 500/2.5k/TBD subscription fees?
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#35This is confusing: "If you build your own funding service, you simply pay a subscription for using our tools." If a platform uses your tools, but not 'your' capital, does it still pay Lendflow a 2%/3%/5% fee on all the loans it issues? Or does it only pay Lendflow the 500/2.5k/TBD subscription fees?
The platform would not then pay a % fee on loans it issues. They would only pay the subscription fees and any fees for using services through the API.
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#36Very interesting. I'm working on products for embedding lending into various niche B2B transactions, especially things that are considered "lumpy" to cash-flow, examples are recruiting, software downpayments, deposits. Have you come across anything like your product that exists in EU/UK?
Not yet, although the UK is coming up soon for Lendflow. EU will be a bit later but is on the way as well.
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#37Who 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?
We handle everything (all support and onboarding) until the funds are disbursed by a 3rd party lender/funder. This is to keep the experience consistent across all of our financial institutions.
Our platform partners makes money by earning a % of the loan value from each business that is funded.
If our platform partner decides to fund businesses themselves, then yes they'd need to collect from the small businesses and earn the full margin on each loan they issue.
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#38This is confusing: "If you build your own funding service, you simply pay a subscription for using our tools." If a platform uses your tools, but not 'your' capital, does it still pay Lendflow a 2%/3%/5% fee on all the loans it issues? Or does it only pay Lendflow the 500/2.5k/TBD subscription fees?
The platform would not then pay a % fee on loans it issues. They would only pay the subscription fees and any fees for using services through the API.
Thanks Jon! Will be reaching out to you guys soon...
Re: Launch HN: Lendflow (YC W21) – Infrastructure for embedded lending services
#39Very interesting. I'm working on products for embedding lending into various niche B2B transactions, especially things that are considered "lumpy" to cash-flow, examples are recruiting, software downpayments, deposits. Have you come across anything like your product that exists in EU/UK?
Not yet, although the UK is coming up soon for Lendflow. EU will be a bit later but is on the way as well.
Great, will follow closely.