In this week's FIntech Spotlight we speak to Noesis's Scott Harmon and learn about the evolvement of vendor aligned finance.
Within marketplace lending, most of the coverage of this emerging Fintech sector is in regards to the connecting of investors and borrowers on P2P platforms. But, another market taking shape are three way marketplaces that match borrowers, investors and vendors. Learning more about this sector, Finance Magnates spoke with Scott Harmon, CEO of Noesis, whose firm operates a lending platform focused on the $30 billion a year energy supplies market, such as heating, ventilating and air conditioning (HVAC) equipment.
Operating in a niche market, Noesis connects vendors of commercial energy equipment and installers with customers and investors who can provide financing for projects, in what Harmon refers to as ‘vendor aligned finance’. The typical example of a Noesis customer is a building manager who uses Noesis to receive bids from vendors for their HVAC needs, and upon getting prices, also connects them to lenders.
Overall, the marketplace is used to find and help fund energy and cost reducing projects, of which Harmon cited proper modernization of infrastructure which can reduce energy costs by 20%.
But, beyond connecting the players, the real technology of their platform and what may allow Noesis and other vendor aligned fintech firms to grab meaningful market share are the project insights they provide. In Noesis’s case, their software analyzes building projects to determine what the cost savings of installing new HVAC equipment are and the long-term benefits.
On the surface, the obvious benefit of project evaluations are reports that vendors can use to pitch potential customers of the worthiness in upgrading their energy infrastructure. For customers, the energy estimates and cost estimates are useful for factoring future cash flows.
Harmon also explained that beyond vendors and their customers, the cost expectations and energy savings are useful for lenders. With it, they gain a clearer perspective on a building operator’s future cash flow and ability to repay their debt. As a result, the additional cash flow information allows lenders to provide capital for projects where simply evaluating the future resale of purchased equipment may not make economic sense.
Overall, Harmon described that because of the overall benefits he believes, “That there is a trend in fintech to create three way marketplaces.” He cited that traditionally, vendors will have their own sales people to attract new deals, with some of the larger players also operating financing divisions. Through marketplaces, vendors have the ability to outsource segments of their sales process, as well as no longer needing to worry about sourcing financing for their customers.
In regards to their platform, Harmon stated that Noesis is working with a group of lenders that he described as “all have knowledge in the equipment financing space." For lenders, the marketplace reduces the cost of acquiring loans as new deals are funneled to them through the platform. Currently, Harmon revealed that average loan sizes are for around $350,000. Overall, Noesis and other similar firms show the continued direction of marketplace platforms and their ability to carve out new niches in alternative finance.
Fintech Spotlight is a new column on Finance Magnates devoted to reviewing innovative financial technology companies and sector trends.
Within marketplace lending, most of the coverage of this emerging Fintech sector is in regards to the connecting of investors and borrowers on P2P platforms. But, another market taking shape are three way marketplaces that match borrowers, investors and vendors. Learning more about this sector, Finance Magnates spoke with Scott Harmon, CEO of Noesis, whose firm operates a lending platform focused on the $30 billion a year energy supplies market, such as heating, ventilating and air conditioning (HVAC) equipment.
Operating in a niche market, Noesis connects vendors of commercial energy equipment and installers with customers and investors who can provide financing for projects, in what Harmon refers to as ‘vendor aligned finance’. The typical example of a Noesis customer is a building manager who uses Noesis to receive bids from vendors for their HVAC needs, and upon getting prices, also connects them to lenders.
Overall, the marketplace is used to find and help fund energy and cost reducing projects, of which Harmon cited proper modernization of infrastructure which can reduce energy costs by 20%.
But, beyond connecting the players, the real technology of their platform and what may allow Noesis and other vendor aligned fintech firms to grab meaningful market share are the project insights they provide. In Noesis’s case, their software analyzes building projects to determine what the cost savings of installing new HVAC equipment are and the long-term benefits.
On the surface, the obvious benefit of project evaluations are reports that vendors can use to pitch potential customers of the worthiness in upgrading their energy infrastructure. For customers, the energy estimates and cost estimates are useful for factoring future cash flows.
Harmon also explained that beyond vendors and their customers, the cost expectations and energy savings are useful for lenders. With it, they gain a clearer perspective on a building operator’s future cash flow and ability to repay their debt. As a result, the additional cash flow information allows lenders to provide capital for projects where simply evaluating the future resale of purchased equipment may not make economic sense.
Overall, Harmon described that because of the overall benefits he believes, “That there is a trend in fintech to create three way marketplaces.” He cited that traditionally, vendors will have their own sales people to attract new deals, with some of the larger players also operating financing divisions. Through marketplaces, vendors have the ability to outsource segments of their sales process, as well as no longer needing to worry about sourcing financing for their customers.
In regards to their platform, Harmon stated that Noesis is working with a group of lenders that he described as “all have knowledge in the equipment financing space." For lenders, the marketplace reduces the cost of acquiring loans as new deals are funneled to them through the platform. Currently, Harmon revealed that average loan sizes are for around $350,000. Overall, Noesis and other similar firms show the continued direction of marketplace platforms and their ability to carve out new niches in alternative finance.
Fintech Spotlight is a new column on Finance Magnates devoted to reviewing innovative financial technology companies and sector trends.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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