1. Executive Summary

Purpose

OpenAssets provides working capital to export-focused SMEs by financing their receivables. The platform operates two factoring models:

1. Recourse Factoring - SME bears buyer default risk
2. Non-Recourse Factoring - Platform bears buyer default risk and provides full protection

Both models are supported by institutional capital, risk-based pricing, and a senior–junior tranche structure to protect investors.

Market Context

SMEs in emerging markets face prolonged payment cycles (60–90 days) and limited access to trade finance. The global trade finance gap exceeds USD 1.5 trillion.

Financial Viability

The platform is economically viable without ongoing subsidy.

Pilot incentives (e.g., discounted SME pricing or platform-funded investor yield) are explicitly identified as temporary customer acquisition strategies.

2. Product Structure

OpenAssets operates two complementary products to balance risk, affordability, and scalability.

2.1 Recourse Factoring

Risk: SME bears buyer default risk

Capital Requirement: Very low (no EL reserves)

Pricing: 3.0%–5.0% per 60-day cycle

Primary Use Cases:

• SMEs with reliable buyers