Fulfin Strategy:
How do we become a profitable as a lender? (via warehouse financing?)
Increase Revenue
Reduce Costs
originate more loans; how? what are the current bottlenecks?
originate larger loans; how?
originate longer loans; how?
Cost of risk
Cost of capital (refinancing)
become a bank?
cost of operations (people)
to get a lithuanian banking license; EUR 1m of capital;
https://psplab.com/services/specialised-bank-license-lithuania-banking/
BAWAG deal
cost of acquisition
expand into a different vertical; what do we need to do to enable that?
embedded?
Other thoughts
what changes, if the BAWAG deal does not go through?
what are the other options?
payment split? (i.e. integrated into the cash distribution from the platform)
what is the team size at which this business becomes profitable?
new vertical, i.e. reject lesser applications to reduce CAC
the minimum team size to operate tech: 2 Data Scientists + 2 Engineers (internal) + 1 Engineer (external)
risk sharing?
Fulfin Strategy:
How do we become profitable if we pivot to the marketplace model?
Decrease costs?
Increase revenue
we'll earn significantly lesser from each loan issuance, and hence need to originate a lot more?
solves the first loss piece bottleneck
cost of risk
cost of acquisition
what's a successful example of this?
other thoughts?
what's a successful example of this?
what's an unsuccessful example of this?
what's an unsuccesful example of this?
October?
creditshelf?
access refinancing that supports that?
Cost of operations
what is the minimum team size?
cost of refinancing
presumably no risk on our books?
presumably
Earn from rejected customers, i.e. referrals
however, we've tried this for 3 months and no tangible outcome, so presumably this doesn't work
Feasibility of equity raise
equity needed for break-even
unit economics
cap table?
What are the dimensions to compare debt facilities?
Equity lock-in for origination (advance rate)
overall unit economics
cost of risk (how are defaults managed)
cost of capital (interest rate)
feasibility of securing such a deal