Innovative start-up launching a capital raise in four tranches
A global first, benfinia transforms pay into a superior asset for financing and employee benefits
Global First
benfinia transforms pay into a superior asset for responsible free cashflow financing. We combine short-term liquidity for businesses with embedded employee benefits, including flexible payday and a measurable approach to employee well-being.
The investment supports the creation of a high-margin, scalable start-up targeting more than EUR 500 Bn of an underutilised EUR 1.2 Tr working capital market in Europe.
After two years of preparation, we are looking for seed investment in four tranches with clear milestones and deliverables.
A projected 40% gross operating margin in the Greek sandbox market alone to deliver capital return to investors staring in month 53.
Introducing a new financing approach based on a new asset class for cashflow financing & flexible payday
We call our innovative financing “Pay-backed Financing” (PBF), a global first new form of Asset-backed Financing.
Pay-backed Financing transforms pay into a superior collateral that serves as an insurance wrapper for financing and thus enables funders or banks to finance any business at reduced risk and improved terms compared to current unsecured financing.
As part of those terms employees will get free and flexible access to their earned pay as an incentive for the use of the asset pay.
In that sense Pay-backed Financing relies on a virtuous cycle of benefits to the employee, the business and the funder.
benfinia’s virtuous benefits & financing cycle
Global First
 | Immediate liquidity for businesses from funder made possible by monetising payroll obligations |
 | Flexible payday – access to earned salary and other benefits for employees improving their satisfaction, retention and productivity |
 | Transparent social impact measurement which enhances ESG alignment without constraining funds |
Global need. Top 5 EU markets identified. Launch of Greek sandbox
EUR 500 Bn of Pay-backed Financing in Europe’s top 5 markets
Global First
benfinia addresses an untapped market opportunity exceeding EUR 500 Bn in short term free cash-flow financing across five key European countries: Greece, France, Germany, Spain, and Italy.
This opportunity represents on average 40% of the total traditional working capital financing market (EUR 1.25 Tr), with penetration potential ranging from 11% to 68% depending on the country.
We will launch with our sandbox in Greece due to favourable market situation.
benfinia solves critical market needs
70% of small & medium businesses (SMBs) in Greece today are cut off from financing. For them, benefinia’s Pay-backed Financing will solve a critical, today unfulfillable need.
42% of enterprises cannot get financing, due to cost of collateral requirements. Also for this segment of the market, Pay-backed Financing is a solution to a pressing need.
Corporates are searching for new ways to reduce their working capital and increase their ESG footprint. For them benfinia is a good solution for a current problem
Employees face financial stress impacting their mental health. Many of them see flexible access to their earned pay as helpful to ease that stress.
Overall, in Greece businesses employing 55% of employees fall under the category, where benfinia’s services solve critical, unfulfilled needs – making it an ideal launch place for our sandbox.
Investment claim: structured growth from proof to profitability
All the bases for a Greek roll-out have been covered over the last two years:
- Legal ground work
- payment and services processes
- support of relevant stakeholders
- extensive market testing
- healthy pipeline
Funding will get the benfinia service rolling.
With our capital raise, we follow a progressive, capital efficient investment roadmap designed to validate the solution with a sandbox market in Greece. Each funding tranche is tied to a a precise deliverable, with break-even only for the Greek sandbox market forecasted at month 36 and capital return beginning shortly thereafter. These four tranches will be followed by Series A and Series B (the latter for expansion beyond Greece).
Post break-even, the platform is expected to generate strong operational earnings. Operational earnings steadily moving from 22% in month 37 to 43% in months 60 of the monthly recurring turnover.
After month 36, benfinia will activate a capital return plan based on operational profits:
- Operational earnings up to 43% of turnover allows rapid repayment capacity. Structured capital return by month 53
- Early equity holders may receive dividends, profit-sharing, or partial buyout
This strategy offers a transparent, responsible growth path aligned with investor expectations: early validation, clear milestones, and a credible plan for returns – within 40 – 60 months, and only based on the returns of the small Greek sandbox market of EUr 5.4 Bn vs a EUR 504 Bn market in the top 5 European countries!
Now is the time to act!
Unlock liquidity for businesses, give employees financial freedom, provide transparency and ESG alignment and give funders a superior, insured new asset class for financing all this!
Conclusion
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