- What is FRENNS?
FRENNS is a peer-to-peer (P2P) auction platform for invoice financing: we advance cash on unpaid invoices using a P2P model. We match investor bids to give businesses the best available rate in a “Dutch” auction. We set the level of haircut (i.e., the percentage of the invoice that can be financed) based on the credit quality of the invoice debtor and the nature of the invoice itself. We use the latest technology to process invoices and present maximum look-through (on creditworthiness, etc.) to the investor. Our goal is to be the fastest, most secure and most competitive invoice financing platform in the United Kingdom and European markets. It’s our mission to transform the invoice financing market by bringing a fully automated approach to this fast-growing segment of the market.
- How does it work?
The dynamic auction process is designed to push down the costs that business pay to finance their invoices. FRENNS receives commission from the businesses seeking finance. Once the auction ends, the successful investor pays the money less commission to the business. On the due date of the invoice, when the buyer of goods pays the invoice (and following the necessary checks), the system automatically pays back the bid plus interest to the investor and the remainder to the business. The fully automated system helps to reduce overall costs.
- How are you attracting the best investors to your platform?
FRENNS offers potential investors, including high-net-worth individuals and professional investors, a compelling opportunity to earn a better return on their short-term cash. We are continuing to build our network of interested investors through outreach and events in core centres across Europe as we further extend the coverage of the FRENNS platform. We also run an affiliate programme to provide incentives for existing investors and others that recommend investors to FRENNS.
- How does the affiliate programme work?
The Affiliate programme is created for you to introduce your colleagues in the industry to our platform. You will receive an introduction discount over 3-6 months which can be used in your auctions. You can also sign up to the platform as an external affiliate and help us out through introducing businesses and investors. For both the external affiliate and for the investor or businesses that introduce their connections they will as soon as either of the businesses or investors complete an auction and money is advanced to them receive a discount or a part of the commission from the platform.
- What risk management do you have in place?
Customer on-boarding is performed in the most efficient and timely fashion but without taking undue risks. All KYC, AML, identity/document verification and due diligence is performed quickly using our third-party specialist. Our proprietary scoring method takes a conservative approach and flags outliers for manual verification. Company due diligence is performed for both clients and buyers of goods. All non-confidential credit information is presented to the investor to help inform their investment decision. We use both traditional credit scoring methods and machine learning to offer the investor the best available intelligence.
- Tell me more about the pricing structure?
We have decided to be the cheapest on the market and avoid complicated charging structures. Our system enables us to make the auction at a lower fee than anyone else. Our charge is a flat fee of 0.9% of the face value for the business and free for investors.
If you know someone who would benefit from using our platform you can recommend that company. If you recommend someone to use the platform you will be able to cut your own fees to the platform further.
If you are using a different form of invoice financing or if you use one of our competitors, you are welcome to use the platform for free for 3 months. You only need to prove that you have traded with our competitors.
Businesses recommended by investors will be able to use the platform for free for three months.
Bank charges apply for all users.