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Fulfin Strategy: How do we become a profitable as a lender? (via…
Fulfin Strategy:
How do we become a profitable as a lender? (via warehouse financing?)
Increase Revenue
originate more loans
; how? what are the current bottlenecks?
BAWAG deal
solves the first loss piece bottleneck
expand into a different vertical; what do we need to do to enable that?
access refinancing that supports that?
originate
larger loans
; how?
originate
longer loans
; how?
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
Reduce Costs
Cost of risk
payment split? (i.e. integrated into the cash distribution from the platform)
risk sharing?
Cost of capital (refinancing)
become a bank?
to get a lithuanian banking license; EUR 1m of capital;
https://psplab.com/services/specialised-bank-license-lithuania-banking/
what are the other options?
cost of operations (people)
what is the team size at which this business becomes profitable?
the minimum team size to operate tech: 2 Data Scientists + 2 Engineers (internal) + 1 Engineer (external)
cost of acquisition
embedded?
new vertical, i.e. reject lesser applications to reduce CAC
Other thoughts
what changes, if the BAWAG deal does not go through?
what's a successful example of this?
what's an unsuccesful example of this?
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
Fulfin Strategy:
How do we become profitable if we pivot to the marketplace model?
Decrease costs?
cost of risk
presumably no risk on our books?
cost of acquisition
Cost of operations
what is the minimum team size?
cost of refinancing
presumably
Increase revenue
we'll earn significantly lesser from each loan issuance, and hence need to originate a lot more?
other thoughts?
what's a successful example of this?
what's an unsuccessful example of this?
October?
creditshelf?