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SDG 7 is essentially solved. We can provide energy access to all. We have solar and battery technology. We have the ability to distribute to the last mile and the technology is affordable to all...if paid on credit. So the only issue is how do we provide credit sustainably to the people in need?
HOW BRIDGIN WORKS
Bridgin allows distributors providing credit or any leasing business to connect their loan management platform (such as PaygOps, Angaza, etc) and make their assets available for investors to easily purchase pools of receivables. In return, the distributors get instant liquidity to scale their operations.
After purchasing the assets, customer repayments go straight to investors, who visualise the portfolio performance in their BI tool.
With this unlocked cash, distributors can scale their operations and reach more customers at the last mile.
Bridgin unlocks new capital sources, channelling more funding towards traditionally overlooked companies serving the bottom of the pyramid and are needed to close the funding gap
of annual funding gap to reach SDG7
off-grid funding going to 7 large companies
off-grid funding going to 150 small companies
BRIDGIN FOR DISTRIBUTORS
Easily manage your asset portfolio and get instant liquidity to scale your leasing operations
Connect your loan management software for the asset data to be automatically updated and monitor portfolios in visual dashboards.
Access non-dilutive financing by turning your receivables into upfront cash.
Forget cash-flow imbalances: there are no repayment schedules, investors just receive your customers’ payments.
Allocate less time to costly fundraising, and more liquidity to your growth and impact.
BRIDGIN FOR INVESTORS
Gain exposure to a new untapped asset class through a lighter financial management process with mitigated costs and risks
Buy customised portfolios of receivables based on granular analysis of financial and impact data
Monitor the performance of the purchased portfolios in visual dashboards.
Automated payment routing, so payments collected on accounts of purchased assets are automatically sent to the investor
Back-up Servicing to reduce collection risks by guaranteeing a relay for collection and maintenance on the field and software sides
Effective cross-border cash flows
SUCCESSFUL EARLY PILOT
In order to demonstrate how financing last-mile operators through receivable financing mechanism benefits distributors and investors alike, we piloted a true receivables purchasing platform in Kenya.
FGV, the investor, recovered 40% of the purchase value after 3 months / 100% at year 1
Pawame, the distributor, got access to funding when most options were not available.
“Access to working capital financing remains one of our sector's most significant challenges, and we're excited to partner with Paygops and FGV on this innovative approach to the issue. We look forward to significantly increasing Pawame's scalability through this opportunity."
Maurice Parets, Pawame’s CEO
“Managing the due diligence and complex debt structuring can be rather challenging for investors in the Paygo market due to the inconsistency of data formats we are presented with. Having access to standardised data and being able to exhaustively assess receivables portfolios from early-stage distributors through PaygOps' mechanism is a game-changer for investors in terms of costs and time-saving. "
Maxime Bouan, Partner at First Growth Ventures (FGV)
1. Who is eligible to sign up for Bridgin?Any distributor or leasing business having already experienced one loan cycle (necessary to understand historical sales and payment trends) and who has sufficient amounts of accounts receivables for sales can consider raising funds on Bridgin.
2. What is the minimum ticket size? And the maximum?Ideally, Bridgin is looking for companies willing to sell a minimum of $50K-100K per batch of receivables. But this is flexible: the focus is less on the initial amount than on the ability of the distributor to repeat the sales operation. As for the maximum, there is no fixed ceiling as to what can be managed on Bridgin - this is rather a discussion to have with the investor.
3. How does Bridgin connect to a Paygo Management software?Bridgin is already interoperable with PaygOps and Angaza: connection information will be provided and requested once a distributor registers on the platform. The platform has been built in a way which makes it easy to integrate the platform with any Paygo Management Software. Integration work with other commercial softwares can be discussed with the Bridgin team. In-house platforms require some integration work to be carried out: access to API endpoints will be provided for the distributor to lead such development.
4. Which data is requested for the due diligence to take place?- A first round of due diligence takes place at the company level, to assess 1) the ability of the company to service its portfolio and 2) its growth perspectives, which will influence its ability to repeat receivables sales over time (an important aspect in the strategy of some investors). Data requested include for instance audited financial statements, BP and deck. - To carry out the underwriting/assessment of the assets for sale, exhaustive payment and contract data of assets the said assets will be necessary. Investors will also want to access historical payment data to carry out analysis by cohort (type of product/maturity of the payment plan / …) and understand the repayment perspectives of active assets for sales.