A Flexible, Innovative
Pay-As-You-Trade Business Lending Solution
Our product will profoundly change the conversation your bank is able to have with your business banking clients.
Our product will profoundly change the conversation your bank is able to have with your business banking clients.
With FinTechs disrupting the small business lending industry and capturing valuable market share, you need an experienced partner to help you quickly and compliantly launch a product your SMB clients will love.
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Our loans are fully pre-approved, meaning there is no need to apply, and no documents to submit. When an SMB receives a digital offer, origination and signing are done immediately, and funds are disbursed automatically via a self-service portal, and all within a few minutes.
Our user-friendly, white-labeled self-service portal provides your clients with a real-time overview of all the essentials — from terms and fees to director signatures and their loan balance, putting them in full control by ensuring they’re always informed about their position, and what to do next.
Our pay-as-you trade loan structure, offers your clients the peace of mind they need to focus on their business, knowing that even when business is slow, they don’t run the risk of default — alleviating stress, and allowing them to focus on what really matters.
Readvancing, or topping up a loan in progress, is quick and easy. In just a few short steps, clients can select the top-up amount in line with our pre-approved limits and request digital signatures from their stakeholders. This allows the readvance to be processed instantly, without the need for any paperwork.
At its core, our solution offers a cashflow or term loan, underwritten by analysing the business’ historical cashflow, allowing businesses to repay in line with their future cashflow (pay as you trade).
From here, all that remains is to ensure seamless integration with your specific systems, processes and local compliance requirements.
All our work is white-labeled under your brand and balance sheet, tailored to your customers, and always subject to your review and approval.
We’ve operationalised our ability to anticipate and proactively answer the often tedious internal procedures the bank requires. We’ll help you understand what needs to be done, integrate with your systems and processes, and launch and co-operate our solution with you, every step of the way.
Our cashflow lending solution is proven to deliver a remarkably low default rate, at scale, over many years, even during Covid-19. The credit models developed in partnership with Standard Bank have been fully audited and reviewed by all stakeholders over multiple rounds. As part of working with you to align with your credit team, Augend will provide inputs and analysis (including a sample proven credit paper) to assist you in seeking approval from your credit approval committees.
Our loan offers can be unconditionally pre-approved (in line with agreed credit parameters); thus removing the need for paperwork to be submitted. Digital signatures remove the need for ‘wet signatures’ and eliminate the effort required to print, sign, and scan documents. Multi-director signing can be fully facilitated digitally, without requiring physical gathering for a board resolution.
Our experience in the banking space has allowed us to develop a robust provisioning strategy, to enable you to right-size your provisioning for this loan book. The system is flexible enough to adjust over time as confidence in the solution grows and performance trends flow back into the modelling.
When a loan doesn’t require commitment to a fixed repayment amount or period, traditional definitions of what constitutes a default no longer apply. With Augend’s cashflow lending solution, a new definition is provided, triggering default states in line with true default behaviour. This allows the bank to manage the risk of the lending portfolio and move to soft and hard collections when appropriate.
Augend’s cashflow lending solution doesn’t conform to traditional accounting models within most banks. For that reason, we have implemented a fit-for-purpose, extensively audited accounting strategy that is fully IFRS 9 compliant.
Stakeholders buy into new products when they understand how they work, how they will satisfy the measures they are incentivised to manage, and when they understand that they will not infringe on their personal or departmental KPIs. If stakeholders feel they are being ignored, circumvented, or put at risk, you are likely to face strong internal opposition.
We understand these hurdles and have learned from experience how to engage stakeholders at the right time and address the issues that concern them most. We know how to answer key questions and foster positive engagement early on. This offers optimised alignment as a basis, amplified by creative collaboration, to solve your bank’s unique set of challenges. We’re geared to empower you to achieve the same positive results within your organisation.
Integrating with legacy systems can be a major challenge — especially when there are numerous concurrent projects, capacity is limited, and lead-times long. Augend’s cashflow lending solution provides its own core lending capability, using industry-leading technology that sits alongside, and only requires light integration to the bank’s legacy systems. Integration can also be phased in over time, starting with a low-impact launch and maturing over time as integration slots become available.
Our event-driven, services-based architecture allows us to support all leading public cloud providers for those banks and countries where such deployments are acceptable and approved by their Group Technology and Risk teams. Many banks, however, prefer (or are required) to host in-country or even on-premises. In these cases Augend’s solution can just as easily be deployed within the bank’s own data centres. This deployment model addresses both the group’s technology and risk concerns, as well as the local data sovereignty requirements.
We adopt your measures of success, as our own. Fully immersed from day one, we co-create the solution with you, to keep us motivated by the same goals that drive your team.
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By partnering with Augend, you’ll be able demonstrate a deeper, more customer-centric understanding of the challenges that smaller businesses face, enhancing your reputation and appeal to small businesses, resulting in higher retention, and increased cross-selling opportunities.
Augend’s cashflow loan is a high-margin product designed to generate significant profits with very low risk. Unlock new revenue streams and drive increased retention through a fuller value suite.
With Augend’s proven track record and expertise in lending, you can trust that your customers are in good hands. With our ongoing support and guidance, you’ll be able to focus on your core strategic priorities, knowing that we understand how to meet the rigorous requirements of a complex bank.
Our solution is designed to be deployed quickly and seamlessly, with minimal impact on the bank’s existing systems and processes. This enables you to offer new products and services faster, gain a competitive edge, and recapture market share.
“In 4 years, we’ve extended over $300 million in business loans, to more than 12,500 entrepreneurs, and seen exceptional credit performance.”
“In 4 years, we’ve extended over $300 million in business loans, to more than 12,500 entrepreneurs, and seen exceptional credit performance.”
Yes, our core loan system operates alongside your existing systems, integrating into your legacy systems where needed. However, we recognise the challenges of skill availability, project prioritisation, and lead times. Consequently, we typically suggest beginning with a low-integration approach, progressively enhancing integration over time — this balances time-to-market with an incrementally maturing solution.
Augend’s systems have been built to meet stringent security and privacy regulations and can be configured to meet local requirements. This has been proven in production, through audits over several years. We also use anonymised data for most of our analytical processes. As you would expect, we have bank-grade data security policies in place to protect data that is shared with us, and we work closely with the bank to ensure we have considered all the consents you require.
Every country or region has its own regulatory landscape, so we endeavour to understand the deep nuances of each region’s requirements. Our product is flexible enough to be structured to meet credit regulations, as well as other regulations that may be relevant, and can also be structured to be Sharia compliant if needed. We have navigated many internal regulations over the years, and have developed a robust blueprint for how this can be managed.
Change management, especially within a large bank operating under strict regulatory and compliance constraints, can be a challenge. Augend offers extensive insights and experience in successfully achieving organisational change. We’ll even bring in some of the individuals and artefacts that were pivotal to our success at Standard Bank (the largest bank in Africa). We’ve run into all the typical change hurdles, and figured out how to satisfy various stakeholders, adapt or adopt the various policies and models, and generate collaborative buy-in through a fully transparent process that solves the challenges head-on. We’re excited to empower you to achieve the same success in your organisation. We’ll even let you take all the credit.
Despite banks worldwide dealing with a core set of shared challenges, each jurisdiction and individual bank carries its own unique requirements. Our solution addresses these common challenges out-of-the-box, whilst maintaining adaptability for more specific requirements. This unique approach doesn’t merely cater to these requirements but also uncovers a potential for differentiation, offering you the chance to become a trailblazer in your industry.
You can expect it to take 3-6 months for an initial proof of concept and roughly 6-12 months for a scaled implementation. We recommend a pilot or proof of concept for a limited set of loans as a means to test the credit model and product-market fit, and to build confidence for scale. Typically, this will take 3-4 months to plan (including getting signed agreements, preparing the team, and designing the pilot’s operations and success measures). The pilot will then run for the agreed duration, after which a full-scale rollout will follow. Timelines are typically determined by the bank, and Augend easily adapts to shorten or lengthen these timelines as required.
One of our implementation specialists will be in touch with you to schedule a demo, and discuss your specific needs in more detail.
