This presentation is about a concept that enables track-and-trace of invoices (known from e-commerce) by exchanging the invoice payables status. On top of that, it allows every SME in the future to do a finance request on his invoice with just 'one click on the button' from his accounting software package. The SME will receive direct financing on his invoice and evades any payment term.

1. Initiative for standardising ‘track-and-trace’ of invoices and ‘one-click-finance’ requests
Exchanging invoice payable statuses for better financing of SMEs
3 December 2015

2. 2 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Unleashing invoice statuses creates value for the whole ecosystem
• The invoice status “sits” in your customers administration – waiting
for approval and to be paid
• Help ‘Unleash the status' of outbound invoices back to the original
sender (i.e. supplier)
• Supplier’s software has to be able to ask for the invoice status and
receive it back from his buyer
• The invoice status is little information - but a great opportunity for
ERP software providers to help their clients with faster and better
invoice financing
RECEIVED VIEWED PENDING APPROVED VERIFIED GUARANTEED PAYMENT

3. 3 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
How can we realise this?
• Create an exchange standard for invoice status information
• We need an international coalition of actors in the financing
chain for this: ERP providers, banks and other financiers, e-
invoicing providers
2,430.
00
DueAmo
unt
Stat
us-
4
+
4
+
4
+
1
5+
1
7+
2
0+
3
0
2,690.
00
Proc
essin
g
pay
ment
Pendi
ng
appro
val
Proce
ssing
paym
ent
Pendi
ng
appro
val
Pendi
ng
appro
val
Buyer
appro
ved
Proce
ssing
paym
ent
2,430.0
0
1,122.0
0
256.00
4,500.0
0
1,234.0
0
876.00
6,787.0
0
Dynamic
Discounting
EUR 2,636.20Finance
Exchange
EUR 2,609.30
Financier
EUR 2,582.00
PlatformGreen N.V. http s://platformgreen.com/youraccount.asp x- -sme
4
Received invoices Actions
MyPlatform
Platform
Green
Dashboard Accounts Reports Activate Contacts Settings
Due To Amount € Due Status
O 07 Nov 2015 Innopay
Lunch17 /11/15
2,690.00 +30 Approved
O 29 Oct 2015 Congress
Catering 20/10/15
6,787.00 +27 Approved
O 28 Oct 2015 Shop B
Delivery 26/10/15
876.00 +26 Processing
payment
O 16 Oct 2015 Corporate B
Lunch11/10/15
325.00 +14 Viewed
O 16 Oct 2015 Corporate C
Diner 10/10/15
4,500.00 +14 Received
O 11 Oct 2015 Shop B
Delivery 09/10/15
234.00 +9 Processing
payment
Invoices
You have 3 approved invoices
Get paid now!
Dynamic Discounting
EUR 2,636.20
Finance Exchange
EUR 2,609.30
Financier
EUR 2,582.00
Viewed
• Implement standards in ERP software API to create optimal user
experience (i.e. ‘one click finance’)
• Develop and embed propositions in the growing ecosystem of e-
invoicing providers, financiers and banks
EU wide
standardisation

4. 4 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
When and how can you participate?
| January ‘16 February March
Free Webinar
Date: 10th of December
Time: 15:00 – 16:00 CET
Click here to register
Workshop
Date: 15th of January
Time: Morning
Location: Frankfurt
Start of Coalition in Q1 2016!
Pepijn Groen
pepijn.groen@innopay.com
+31 6 24 89 72 99
Chantal van der Velde
chantal.vandervelde@innopay.com
+31 6 42 36 80 66
December ‘15
Read more information about our initiative below!

5. 5 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
BACKGROUND INFORMATION

6. 6 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Accounting software providers are able to reinforce SMEs
working capital and utilise finance by unlocking invoice
status information and provide for real-time financing!
Current invoicing situation:
• Exchange of today’s EU invoice value (i.e. B2B and
B2G) is approximately €17.500.000.000
• Suppliers suffer from Buyer’s payment behavior,
ranging from 30 - 120 days
• Only ±38% of outbound invoices are paid by the Buyer
on due date, resulting in limited visibility for Suppliers
on the invoice status and their working capital
Drivers for unlocking financing potential:
• SMEs access to financing instruments is on top of the
EU political agenda
• Financial data (e.g. invoice status, risk information,
transactional history) “sits” in administrations and is
ready to be used
• Suppliers are not yet facilitated directly from their
software in financing
Asset-based lending
• Supplier propositions (e.g.
Factoring, ABF, Dynamic
discounting, invoice financing)
• Onboarding of mid-tier suppliers
which represent ±25% of annual
spend of invoice value
• Only available for SME’s with
>€2 mln turnover, due to high
associated costs (e.g. risk
analysis, compliance)
Reverse factoring
• Buyer driven
• At invitation of large buyers,
onboarding of high spend
strategic suppliers, that
represent ±75% of annual spend
of invoice value
Invoice financing
• Supplier driven (e.g. invoice
financing via contract or per
invoice)
• Onboarding small business
suppliers representing limited
annual spend of invoice value
• Available for long-tail suppliers,
depending on their risk
exposure and with minimum
invoice value (e.g. €1000)
Reverse Factoring Asset Based Financing Invoice Financing
Source: Billentis E-Invoicing/E-Billing and Cribis, Payment Study 2014
Avg.annualspend(invoicevalue)
# Suppliers
Low
High
Low High
Reverse Factoring Invoice financingAsset Based financing
Categorisation in Asset Based Lending for SME’s (non-exhaustive)
SME’s access to financing instruments is far from optimised: great financial
potential hidden in invoices

7. 7 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Status information already exists in e-commerce, so why not apply it to
invoicing?
2
1
Accepted for shipment Driver on his way Delivery
Received invoice Processing invoice Will pay invoice
E-Commerce
Invoicing

8. 8 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Current situation:
• Standardisation of (electronic) invoice exchange is
realised in several initiatives (e.g. PEPPOL,
Simplerinvoicing). This is complementary to the
model, not conditional
Starting point
• Accounting software providers and other actors in the
invoice and finance chain have to team-up for
standardisation of finance requests invoice status and
its electronic exchange
Next step:
• Create a network between buyers, suppliers and their
preferred financiers to exchange status information
and fund request via their preferred invoice solutions!
Defined roles and responsibilities to create a network for
standardised exchange of invoice status information and
finance requests is required
Invoice
exchange
Financing
requests
Invoice status
informa on
Focus of
this
ini a ve
Invoice exchange
Financing requests
New standardisation via (e.g.)
• One-click-finance button in software
• STP of fund requests to financiers
New standardisation via (e.g.)
Acknowledgement of receipt
• Receiving invoice
• Viewing invoice
Level of Assurance
• Invoice approval Self-declared
• Authorised invoice approval Verified
• Payment guarantee Guaranteed
• Payment guarantee+ date
Standardisation of messaging::
• UBL, PEPPOL, UN CEFACT, ..
Interoperability initiatives: Finvoice, Zoomit, Simplerinvoicing
1
2
3
+
Invoice status information
Trinity of standardisation could be a key driver for SMEs financing (i.e.
‘One-Click-Finance, ‘Track-and-Trace of invoices’)

9. 9 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Introducing the Status Based Receivables Finance (i.e. SBRF) concept
Legenda:
1. Invoice approval
2. Invoice approval + risk information
3. Fund request
4. Invoice approval + fund request
5. Payment/approval
The SBRF model is:
- Based on three enabling roles: Financiers, Status
Aggregator and Status Broker that exchange the
information
- 4-corner,: not relying on a single central party
(e.g. platform) Supplier and Buyer select their
own preferred service provider or invoice
solution
- Inclusive: network participants can play single or
multiple roles
- Easy to use: a single (web-based) dashboard
(e.g. ERP software)
- Complementing open international standards
(e.g. UBL, XML)
- Cross-border: every EU actor should be allowed
to participate
Preferred ERP/invoicing solutionPreferred ERP/invoicing solution
• Applies internal procedures
to check and verify invoice
• Sends invoice status
information to Status Broker
e.g. approved, verified,
payment guaranteed
Buyer
• Receives finance request
from Status Aggregator
• Performs risk analysis
• Selects relevant finance
requests based on their risk
appetite and criteria
• Communicates acceptance
to Supplier and pre-pays
invoice (or batch) to Supplier
Financier Supplier
• Administers and/or sends
invoice via preferred
ERP/invoicing solutions
• Submits a ‘one-click’ fund
request via per invoice or
selection of invoices
• Selects best financing offer
• Receives finance request from
Status Aggregator
• Broadcasts finance requests to
Financiers
• Receives invoice status
information from Status
Broker
• Receives finance requests
from Supplier
• Forwards information to
Finance Exchange
• Enables access to finance on
selected invoices
• Market players: software
provider, service provider
• Receives invoice status
information from Buyer
• Forwards this to Status
Aggregator
• Optional: enrichment of
invoice status (e.g.
transaction history,
solvability)
• Market players: bank, non-
bank (e.g. software
vendors, data providers)
3 1
2
4 5
5
Status Aggregator Status BrokerFinance Exchange
*The role of Finance
Exchange is not in scope for
development of SBRF
network. Optional to include
at later stage

10. 10 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Accounting software providers are in a unique position to support SMEs funding
needs and develop new business opportunities
Company (happy flow) How can you participate in the network?
• Become a Status Aggregation (SA) point and
partner with other service providers (e.g.
ERP/invoicing solution), by aggregating invoice
status information and fund requests
• Become a non-bank Status Broker, facilitate
exchange of the invoice status and enrich by
developing Buyer user profiles based on e.g.
transactional data records
• Become a Financier, do it all at once and built
your own SME financing experience yourself
(i.e. inclusiveness)
Opportunities/Actionables for Software providers
• Develop new propositions for customer needs
- Adding a one-click-finance button in
dashboard
- Integrating invoice status information in
invoice process
• Potential new revenue streams: Collaborate
and create partnerships with other actors in
the industry to optimise your customer base
data opportunties!
Preferred ERP/invoicing solutionPreferred ERP/invoicing solution
• Applies internal procedures
to check and verify invoice
• Sends invoice status
information to Status Broker
e.g. approved, verified,
payment guaranteed
Buyer
• Receives finance request
from Status Aggregator
• Performs risk analysis
• Selects relevant finance
requests based on their risk
appetite and criteria
• Communicates acceptance
to Supplier and pre-pays the
invoice (or batch) to Supplier
Financier Supplier
• Administers and/or sends
invoice via preferred
ERP/invoicing solutions
• Submits a ‘one-click’ fund
request via per invoice or
selection of invoices
• Selects best financing offer
• Receives invoice status
information from Status
Broker
• Receives finance requests
from Supplier
• Forwards information to
Finance Exchange
• Enables access to finance on
selected invoices
• Market players: software
provider, service provider
• Receives invoice status
information from Buyer
• Forwards this to Status
Aggregator
• Optional: enrichment of
invoice status (e.g.
transaction history,
solvability)
• Market players: bank, non-
bank (e.g. software
vendeors, data providers)
Status Aggregator Status BrokerNotes:
• Possible roles for
software providers are
depicted in orange
• Preferred condition:
“cloud” software
solutions
• Invoice status
information and finance
requests flows are
depicted in black

11. 11 SBRF model – SCF Community & Innopay – December 3rd, 2015. © Innopay BV. All rights reserved.
Participate in this initiative and reap the benefits: interested? Reach out to
us!
Create new options for the future
Engage in new partnerships, develop new business
opportunities and set alternative market perspectives
Corporate Social Responsibility (CSR) & Innovation
Improve SME financing together with your customers,
business partners and network actors
New revenue streams
Realize new revenue streams and utilize growing
markets as part of a digital economy
Further broaden expertise
Increase your professional network and expertise on
invoicing and financing
Pepijn Groen
pepijn.groen@innopay.com
+31 6 24 89 72 99
Chantal van der Velde
chantal.vandervelde@innopay.com
+31 6 42 36 80 66
Location & Date
Continously
Content
Gathering in-depth
knowledge/discussing
implications and benefits of
the model
Personal consultation
Free Webinar
Workshop
Location & Date
December 10th 2015
Time: 15:00 – 16:00 hrs
Content
Explanation of model and
project information
Click here to register
Location & Date
Frankfurt, January 15th 2016
(Time to be announced)
Content
Further exploring SBRF
concept in final preparation
for next project phase
Benefits for participants How can you contribute or learn more
about this initiative?
Douwe Lycklama
douwe@innopay.com
+31 6 55 71 11 50
We hope you are triggered by
this initiative. Please contact
us!