The artificial intelligence-based “Faktoro” service on the “Pigu.lt” platform exceeded 1.7 million. euro limit
In 2021, Faktoro, one of the largest non-bank business financiers in Lithuania, was the first to offer an automated revenue-based financing solution to Pigu.lt Marketplace participants. About 40 companies have already used the solution based on artificial intelligence, and the total amount financed by this service has exceeded 1.7 million. euro limit.
According to Dalia Čiutaitė-Antanaitė, Acting Head of “Pigu.lt” Marketplace, quick financing decisions are often vital for marketplace participants who want to rapidly grow their business. By automating this process, the business gets rid of one of the biggest headaches.
“In order to grow rapidly in the field of e-commerce, one must be quick and responsive to market needs. Businesses that have joined our platform often receive significantly more orders than before, and the volume increases even more after expanding sales to neighboring countries – Latvia, Estonia, Finland. Various challenges arise from this, one of which is the need for quick financing. Traditional methods of approaching banks and obtaining mortgage financing are too slow. Therefore, automated income-based financing allows entrepreneurs, especially small ones, to move forward faster,” says Dalia Čiutaitė-Antanaitė.
The essence of this model is that the loan is granted based only on information about the traded turnovers on the “Pigu.lt” Marketplace platform. Due to the speed of decision-making, it has become the main source of working capital financing for many marketplace businesses.
“This solution is part of the broad and exponentially growing embedded finance sector. In this particular case, with the help of artificial intelligence, the turnover generated by the seller on the “Pigu.lt” platform is evaluated and a financing decision is accepted or rejected within 1-2 seconds. An additional advantage is that we do not require any collateral from the business,” says Algirdas Gutauskas, manager of Faktoro.
Since June of this year, this service together with “Pigu.lt” Marketplace is also offered on the Finnish market. According to A. Gutauskas, the development of integrated financing solutions will be one of the priority activities of “Faktor” this year.
“Integrated solutions are the future of e-commerce. Thanks to artificial intelligence and other technological solutions, this service will become even smarter, more convenient for its users. We predict that the amount and demand for such services in the market will increase dramatically in the near future. It is projected that the volume of this service will increase by about 5 times and exceed 180 billion in the world in the next 4 years. US dollars,” says A. Gutauskas.