Creation of an innovative risk management system for factoring cases (FACTRIS)

UAB “Factris LT1” and its partner, UAB “INNTEC”, are currently implementing a project financed by the European Union.

The goal of the project is to develop an automated risk management platform for factored cases, comprising several key modules (system components): data collection module, factoring risk assessment module, risk tolerance configuration module, risk algorithm definition module, and monitoring module.

During the project, research will be conducted to develop and validate the concept of an artificial intelligence-based factorial risk management platform in laboratory conditions, as well as to experimentally develop, create, and demonstrate a prototype of the platform under real operating conditions.

The developed technology will enable us to assess not the riskiness of a specific entity, but the risk associated with a factored case. This will significantly increase the accuracy of the assessment (reliability) and reduce the default rate. Additionally, the platform being developed will enable substantially shorter times for risk assessment and provision of factoring services compared to manual work. Finally, the system will allow performing various functions, including the collection and evaluation of alternative data, configuring the acceptable risk for a factored case, decomposing the risk score into risk assessment rules, updating the version of the risk assessment algorithm tailored to each risk case, and others. All this will enable system users (factoring service providers) to ensure the efficiency, promptness, and cost-effectiveness of the factoring service provision process, ultimately meeting the needs of end users (factoring service recipients) even better.

It is financed according to the “Smart FDI” measure, priority 1 “Promotion of scientific research, experimental development and innovation,” of the 2014-2020 European Union funds investment action program, funded from the European Regional Development Fund.
The name of the project is “Creation of an innovative risk management system of factoring cases (FACTRIS)”
Project executor – UAB “Factris LT1”
The total value of the project is EUR 1,955,389.10
Funding allocated from the European Regional Development Fund – EUR 1,397,043.52
Private investments corresponding to public support for innovations or R&D projects – EUR 558,345.58

The project is being implemented from 2020 February 11 until 2022 February 9
UAB “Factris LT1” has been operating since 2015 as an active alternative financing company. It is the first provider of non-bank factoring (invoice financing) solutions for small and medium-sized businesses in Lithuania, accounting for approximately 25% of the alternative factoring market. In 2018, UAB “Factris LT1” was acquired by the Dutch factoring company “Factris”, which specializes in simplifying the business financing process and implementing innovative credit solutions.