Business model
Banca IFIS’s business model is totally the opposite to traditional models of enterprise financing. Banca IFIS operates by paying more attention to how the enterprise works and less attention to the enterprise’s worth, guarantees and the notoriety of the entrepreneurs within.
Banca IFIS concentrates its assessment mainly on the enterprise’s operations because it believes that this is the most important element in a business, that is the ability to produce, to innovate, to create, to compete, to make profit, both on international markets and throughout Italy. In this way, Banca IFIS, side by side with important companies needing innovative products, can lend support to enterprises that have only modest, or even no, credit worthiness but who, thanks to their business, have receivables due from highly creditworthy customers.
Asset-based method
The asset-based method of working that Banca IFIS adopts, allows it to finance its clients by transferring the risk to the creditworthy debtors and, hence, it can provide enterprises with better financial support quickly, assessing the quality of the receivables rather than the quality of the creditor. In this way, it is able to finance the expansion of enterprises that traditional banks are reluctant to finance. In the medium-term, the use of equipment leasing, recently introduced by the bank, works in the same way: it once again allows the bank to act in the favour of enterprises that are changing and expanding, being the first to invest in their future and their ability to improve.
The novelty of its business model makes Banca IFIS a specialized operator within a market where traditional operators are less attentive to enterprises’ needs and the jobs they do. This allows Banca IFIS and its clients to enjoy an important competitive advantage: the ability to operate in a sector, which although characterized by the need for a high level of knowledge, is able to offer benefits in terms of increased credit at the best conditions. It is Banca IFIS’s extreme specialization that makes it an evolved and innovative operator in its Market: a practically unique model, able to satisfy a market niche that today, due to current economic trends and stricter rules imposed by the Basel 2 accord, has an ever- greater need for immediate resources to feed the managerial and financial requirements of every enterprise.
The effectiveness of Banca IFIS’s business model is demonstrated by the continuous betterment of its results, with the Turnover of receivables purchased growing an average of 23.6% a year since 1998, and the ratio of non-performing loans over total loan commitments standing at 0.8%, the lowest in the sector.