FAQ

Who is LABEST for?

As an SaaS platform, LABEST consolidates the digital world of logistics and inventory management with the requirements of the banking industry. LABEST enables businesses in need of credit to utilize the capital tied up in current stock and inventory as transparent and appraisable collateral for financing. Our solution is designed especially to support small and medium-sized businesses in the retail sector, but also in production, in Germany and across Europe.

Who benefits most from LABEST?

LABEST enables businesses that need an additional source of cash to leverage their inventory by using it as collateral for a revolving credit facility and thus take advantage of available discounts and increased buying power. The financing and utilization of the credit facility are linked dynamically to the value of the inventory pledged as collateral.

LABEST provides the bank with real-time valuations of the pledged collateral and enables it at any time to retrieve historical data on its financing and to define interactive risk parameters that trigger interactive alerts to the designated individuals at the bank whenever the defined event occurs (e.g. significant changes in market price, lack of inventory turnover, etc.).

This enables the bank to monitor the dynamic developments in, say, e-commerce to provide appropriate funding as and when required. The business, meanwhile, benefits from new financing options and, thanks to LABEST as a modern cloud-based platform, shares access to real-time information on its inventory financing facility.

How does LABEST collect the necessary information?

With the consent of the borrower, LABEST uses predefined interfaces (known as APIs) to connect to all standard ERP systems. The real-time inventory information thus obtained is continuously fed into the LABEST database and matched with current prices available on the relevant virtual marketplaces, which are also stored in the LABEST archive. All credit line data are updated and made available by the bank on a daily basis.

Are there restrictions with regard to inventory used as collateral?

In principle, there are no restrictions. The inventory that serves as collateral must be clearly defined in terms of quantity and description and must be products with proven market acceptance. As long as relevant market prices are available online, LABEST is able to monitor the value of these products. This goes for any commodity in B2C and B2B retail, but also applies to raw materials such as coffee, steel or grain.

Semi-finished products, say from the mechanical engineering sector, tend to be difficult to value using publicly available market prices.

How long does it take to connect a borrower?

With the predefined flexible interfaces of LABEST, connecting the technology including necessary testing usually takes no more than 2 days and is virtually hassle-free for the borrower.

Are there restrictions on connecting multiple locations?

No. LABEST can connect several stock locations in Germany and Europe at once, mapping the inventory movements of each site individually or in the aggregate.

How do you protect such large amounts of sensitive data?

LABEST has been verified by KMPG to meet the requirements of the German Accounting Standard IDW 880. The technical systems and databases of LABEST are hosted at a PWC certified technical service provider in Germany in compliance with relevant banking and insurance standards.

How much does LABEST cost and who pays for it?

LABEST usually takes a share of 0.XX% p.a. in a customer’s transmitted credit lines. There are two ways to go about payment here. Some banks assume the costs as part of the general borrowing charges collected from the customer. Other institutions request that the customer be billed directly for the use of LABEST.

Can you give a specific example of the successful use of your platform?

Absolutely. Click here for an example of how LABEST has been used in the field.