Startup Story-Releasing Money within Three Days, BZNK Creates an Inclusive Financing Platform
When running a business, what concerns company owner the most in unable to find the required funding for temporary needs. In response to the long waiting period for payment collection and the time-consuming process of bank loan application, how does company owners find sufficient funds for business operation in time?
Conventionally, small and medium enterprises who apply loans from banks will undergo tedious processes including reviewing the financial status of the enterprise, collecting the credit information of the enterprise and finalizing the loan, which often takes several months to complete. BZNK's corporate fundraising platform not only allows business owners to receive sufficient funding for immediate needs, but also allows public investors to gain better returns and profits from their idle funds.
Target the Blue Ocean of Interest Rates to Create the First Enterprise-Exclusive P2B Platform in Taiwan
Taiwan's small and medium enterprises contribute significantly to the development of industries in Taiwan. However, when business owners are in need for operational funds, other than banks, they often have limited options. Small and medium enterprises in different industries have different financial conditions. The monthly operating costs, sales management, revenue and expenditure of small and medium enterprises are hard to predict, which makes their 401 Business Tax Return difficult to reflect the true conditions comparing with those in big and matured enterprises.
"Companies with mature or stable revenue are more suitable for banks; however, for growing companies such as startups or franchisees, banks may not be the best place to apply for loans." Cang-Yi Lin, CEO of BZNK, said that leasing companies in Taiwan have annual interest rate at 10-18%, while the annual interest rate for banks is less than 5%. The gap in between the two is the point where opportunity lies for P2P corporate fundraising.
In 2016, the "BZNK Corporate Fundraising Platform" was established to help enterprises or collaborate with banks to transfer the accounts receivable to the public in exchange of operational funds through the fundraising platform. Once the enterprises receive the payments, the funds are then returned to the investors.
Fast Match-Making Process to Receive Funds within 3 Days, Nearly 50 Million in Cash Flow is Processed Every Month
The BZNK team adopts AI automation technology, allowing the platform to achieve the characteristics of "low default rate" and "high matching rate". In addition to allowing investors to get involved easily, participating in the fundraising activity, the platform also enables small and medium enterprises to complete the match-making process in less than 5 minutes and raise nearly 5 million in exchange of accounts receivable. The enterprises can also enjoy the convenience of receiving the raised funds within three days.
Since its establishment three years ago, BZNK is able to match nearly 50 million of funds every month on average. It is expected that by the end of 2020, it will reach the target of matching 800 million of funds per year. In addition, through asset mortgaging, the platform also allows investors to participate in the real estate market with small amounts of money, and provides loan applicants with a reasonable and affordable annual interest rate. Currently, the platform has three new financial services including transfer of accounts receivable, startup/franchise fundraising, and real estate financing, providing various options for business owners and the public.
Partnering with Far Eastern International Bank, BZNK Launches the Largest Fundraising Platform in Taiwan
Due to factors such as government supervision, P2P involves many complex financial regulations, types of bills and other technical processes. Recently, the BZNK team has also collaborated with Far Eastern International Bank in non-negotiables, allowing business owners who have received non-negotiable cheques to quickly exchange them into operational funds, and making the platform's cash flow in compliance with regulations. This enables BZNK to become the first P2P operator to reach in-depth cooperation with a bank. Before starting the business, many team members have served in the bank or related financial system for more than ten years. Since the establishment of BZNK, the team committed to promoting inclusive financing in the face of institutes or organizations from the industry, government, and academia. In addition, through diversified channels such as online marketing, telephone surveys, in-person promotion to actual seminars, BZNK has accumulated substantial exposure in startups, accelerators, traditional SMEs, unions in various counties/cities, the Junior Chamber International of the ROC, Taiwan and the National Association of Rotary Clubs, becoming the pioneer of P2P financing in Taiwan.
“Sapling Credit Rating'' AI Automated Training Data Asset
In addition to the fundraising platform, BZNK also created a wide variety of financial technology products that can be used by the general public through utilizing data assets. It also built the "sapling credit" rating through AI automation technology. The rating is calculated based on public information such as the transaction data between the investors and the loan applicants, the corporate registration information from the government, and the court ratings, etc. and the credit weighting ratio of each company is estimated automatically. In the future, we hope that through automation and blockchain technology, the general public can access enterprise-related data at any time.
"These technologies and business models have been used by banks for a long time, but the processes are often too cumbersome. Here, we are using systems and more efficient models to replace manpower, allowing people to use complex financing services with ease." Yan-Jun Lin, COO of BZNK, believes that the collaboration between BZNK and Far Eastern International Bank can make the cash flow of corporate fundraising or investment debt more secure and instant. BZNK also hopes that the public not only play the role of lenders, they can also become close customers.
BZNK has received angel investment from the Founder of Whoscall, and obtained investment subsidies from the Taiwan Financial Services Roundtable (TFSR). In addition, it also joined AWS of the Startup Terrace Linkou, FinTechSpace, Startup Land at National Chung Cheng University, and KO-IN. Through the continuous expanding of its database, BZNK is looking forward to creating a more comprehensive supply chain financial service system for Taiwan.
Figure：Through low default rate and high matching rate, the BZNK team can process nearly 50 million of funds each month. Photographed by: Shao-Yuan Ding
Written/Photographed by: Startup Terrace Editorial team