How the Service Works

PeerPay Ltd performs an administrative function in maintaining the FloFunder platform which matches approved sellers looking for cash flow funding with businesses and individual sophisticated funders and in facilitating payments, collection of sums due and onward distribution of funds via the Platform.

The platform can only be used for approved invoice financing and cannot be used for commercial loans.

The service matches approved invoices against a pool of buyers (funders) meeting the return and risk criteria. Once funds are committed, the platform operates as an automated tool. The base rules of the automated engine are

  • No more than the maximum percentage in any one invoice, with risk spread across as many funders that meet the matching criteria.
  • Participate in every invoice that meets the criteria sufficient funds available.
  • Invoices that fail to attract the minimum number of funders set by the Accounting Practice based on the risk criteria will not be approved.
  • Only “approved” invoices can be submitted to the engine

Sophisticated Investors – Buyers

  • Buyers are invited to register on the platform by their accountancy practice.
  • Upon registration, they need to confirm that they are compliant with their Accountancy practices anti-money laundering regulations and requirements.
  • A series of identity validation checks are undertaken before the funder is required to confirm their acceptance of the published terms and conditions to gain access to the FloFunder platform.
  • Once confirmed and registered, funders are able to deposit funds to their segregated account within the FloFunder platform for matching against approved invoices meeting their profile criteria
  • Prior to committing funds, buyers are offered a profiling tool where they define the levels of return that they are seeking, the criteria in relation to the types and profiles of businesses that they may wish to fund, which in turn, is matched against the risk profiles of the potential sellers.

Buyer’s management of the system

Investment profile:

  • Buyers are required to choose from one to three investment return profiles defined as low, medium or high.
  • Within these profiles the length of time of short term funding (30, 60 or 90 days) and the maximum amounts that they wish to use to invest in invoices are defined.
  • For risk diversification, the “investment” amount is defined both in a percentage and a fixed amount.  
  • This approach ensures that if a funder is matched to a large invoice their percentage amount cannot exceed their fixed amount whichever value is the least.

Management of invoices:

  • Once profiles have been created and funding placed in a client account, the service matches approved invoices against buyers and funds meeting the return and risk criteria.
  • Once funds are committed, the platform operates as an automated tool so there is no need for investors to bid on single or multiple invoices.
  • All percentages of purchased invoices are available online to each buyer with the total number of buyers and amounts visible.
  • The service is anonymous so the only initial visible information will be each buyers’ unique identifier code.

Businesses Seeking Cashflow Funding – Sellers

  • Sellers must be an active UK based company registered at Companies House and not a public body, charity or trust. 
  • They must be actively trading and carrying on a business with a view to profit and using online cloud based accountancy software, for all their accounts and invoice generation.
  • Sellers can only submit Cash Flow Funding Requests via their online accountancy platform against a verified invoice.
  • The FloFunder platform will search for Funders whose funding profile and criteria match the seller’s Cash Flow Funding Request.
  • Once an invoice is fully matched against the rules and risk based criteria of the engine an offer is generated by the Platform containing the offer terms and fees.

Service Manager – Accountancy Practice

  • Invitations to join the Flofunder platform are issued by the Accountancy practice to their client base only.
  • The Accountancy Practice ensures that all authorised users have signed the appropriate terms and conditions.
  • The practice also confirms that they and all their authorised users have complied with anti-money laundering and KYC obligations.