Factoring through NoviCap - Launching a Fintech Startup

NoviCap, a 100% online factoring solution for SMEs, had to take critical steps to grow in 2015. The company was centered on a new "spot factoring model", which allowed it to differentiate considerably from its competitors. Initially, founders of the fintech startup felt that many SMEs would be attracted by the lower overall costs and flexibility of its pay-as-you-go scheme. Struggling with a slow expansion of its customer base, however, the company had to decide whether to maintain its initial approach or pivot to a recurrent factoring model. Marc Antoni Macia, one of the co-founders, wondered if the pricing model was to blame. He was also concerned that if the company switched models, early NoviCap customers would become confused. Yet another worry was if the company's unique approach would be copied by traditional banks, which could respond with competing models.