INVOICE FACTORING SERVICE BUSINESS PLAN

I. Executive Summary

Company Description

The company is a high-growth fintech headquartered in the United States, launching operations in 2026 to modernize working capital for small and medium enterprises (SMBs). It buys outstanding invoices to provide immediate liquidity, combining commercial finance with real-time credit assessment powered by proprietary algorithms. The founding team blends underwriting, software engineering, and commercial finance expertise to underwrite, fund, and manage receivable purchases at scale. One-line: we turn unpaid invoices into cash within days, not months.

Our core offering is invoice factoring delivered through an automated platform that scores credit risk, prices advances dynamically, and handles collections and reporting. We differentiate with real-time underwriting models, faster funding, and integrated APIs for accounting systems. Target customers are US-based SMBs with recurring B2B invoices in manufacturing, wholesale, logistics, and professional services. Short-term goals: launch pilot Q2 2026, onboard 200 customers, reach $5M monthly gross receivables purchased by year-end. Long-term goals: national rollout, $500M cumulative receivables purchased in five years, and expand into embedded finance partnerships. One-line: we scale cashflow for SMBs while managing risk through automation and underwriting expertise.

Problem

Small and medium-sized businesses in the United States face critical liquidity gaps because customers commonly pay on 30 to 90 day terms, leaving firms unable to meet weekly payroll, cover essential operating costs, or buy inventory.

Traditional banks and lending products routinely underserve these firms: loans require collateral or strong personal credit, underwriting is slow, and products create long-term debt rather than short-term working capital. That leaves SMBs unable to bid on new projects, working through operational stoppages, or getting denied for lack of collateral.

We launch in 2026 to provide immediate invoice liquidity via a fintech platform using real-time credit algorithms to fill this persistent cash-flow gap.

Solution

U.S. small businesses face payment cycles up to 90 days that damage payroll, inventory, and growth. Our digital platform converts outstanding accounts receivable into cash within 24 hours: businesses upload invoices via portal or API and receive a significant portion of the face value instantly, while the purchaser assumes collection responsibility and reduces documentation compared with banks.

One-liner: turn unpaid B2B invoices into predictable same-day working capital with minimal paperwork and integrated accounting workflows.

Mission Statement

Our mission is to empower U.S. small and medium-sized businesses by providing the fastest and most transparent access to working capital, using innovative technology and data-driven risk management to convert invoices into reliable cash flow. We commit to judging credit by the quality of work performed, not just the owner's score, and to serving as a dependable growth partner that removes payment-term stress so profitable businesses always have the liquidity to succeed.

Key Success Factors

Execution will rely on technology, risk controls, people, distribution, and liquidity.

• Proprietary technology platform enabling 24-hour funding and seamless software integration.
• Robust risk management with a 12% bad debt provision to protect portfolio stability.
• Experienced management team with deep U.S. commercial finance expertise.
• Strategic partnerships with accounting software providers and a strong referral network for efficient acquisition.
• Scalable credit facilities targeted to reach $100,000,000 by 2030 to meet demand.

Financial Summary

This Financial Summary presents the near-term funding, profitability, and return metrics for the Invoice Factoring Service.

Funding need: Total funding in 2026 is $9,500,000, rising to $145,000,000 by 2030, funded via a mix of bank credit, private debt, and mezzanine financing; minimum projected cash balance is $47,595,000 (Dec-26).

Performance and returns: Breakeven is projected in Sep-27 (21 months); IRR is 5.65%; payback period is 55 months.

The financial outlook shows scaling funding volume, improving EBITDA, and positive project returns by Year 3.

Funding Requirements

The business requires a mix of debt and cash reserves to support a $9,500,000 launch in 2026 and scale to $145,000,000 annual funding volume by 2030.