Lendflo was founded in 2017 by Chris Smith, Remi Tuyaerts, and John Smith with a goal of helping small and medium enterprises (SMEs) in the UK and abroad by providing them with cheaper access to the working capital. Currently, 80% of small business failures can be attributed to cash flow issues: small businesses deliver goods to large corporate clients, then they often have to wait up to 120 days to receive payments for those goods.
Lendflo’s ultimate vision is to create a fluid system, in which SMEs with high cash flow provide financing to SMEs with low cash flow, thus creating a win-win situation and a more efficient use of working capital in any given economy. The company offers a P2P invoice financing platform built on the Ethereum Blockchain to automate the vast portion of the invoice financing process, which ensures more efficient distribution of investor capital into businesses and allows SMEs help each other in their cash flow requirements. The streamlined document processing and advanced credit scoring allows Lendflo to offer low fees to both SME and investor, while the automated processes help both parties close their transaction within seconds, instead of months or days. Finally, all the transactions are recorded on an immutable, transparent record with enhanced data security.
While based in the UK, Lendflo is currently working with the Dubai government and banks in the UAE region to test the proposition before entering other markets.
Learn more about Lendflo here: http://www.lendflo.com/
Lenflo is giving the NGC consultants an exciting opportunity to apply their knowledge, while exploring the role of blockchain technology and cryptocurrency in the sphere of SME finance.
Specific recommendations to be developed by the Consulting team are:
1. Develop a pricing strategy for Lendflo's invoice financing proposition for the UK market
a. Conduct competitive benchmarking to identify best practices in pricing strategies on the market
b. Analyze and prioritize relevant factors for loan pricing (i.e market and economy conditions, competitor pricing, the SME credit assessment, customers' attitude towards similar services etc.)
c. Suggest a pricing strategy that would be mutually beneficial and attractive for the SME and investors.
2. Given a forecasted user base lifetime value of a customer design a marketing strategy that allows us to capture the specified market share in the most profitable way
a. Analyze the applicability of various marketing tools to the Lendflo's business (i.e direct marketing, SEO, referral schemes etc.)
b. Consider overall cost of customer acquisition per user and the revenue they generate.
The managing team of Lendflo will incorporate your recommendations when operational, tactical and strategic decisions are to be made in the near future.