In this exclusive interview, we sit down with Jordan Stefanovski, the Chief Revenue Officer of Hut4 and its fintech vertical, Liquiditas, to delve into the innovative strides they are making in the fintech landscape. As a fintech company operating in the supply chain finance segment, Liquiditas’ goal is to address critical liquidity challenges faced by businesses worldwide. Jordan shares his insights into how Liquiditas is revolutionising the industry with cutting-edge solutions, the importance of staying agile in a rapidly changing environment, and the company’s strategic plans for future growth. His perspectives offer a glimpse into the driving forces behind Liquiditas’ success and its vision for the future.
- What specific liquidity challenges in the financial industry does “Liquiditas” aim to address?
- “Liquiditas” is designed to address various liquidity challenges that businesses face in the modern financial landscape. Our core solution targets the financial challenges companies are faced with in the supply chain segment. These challenges include managing working capital, accessing funds quickly, navigating complex cross-border transactions, and dealing with fluctuating cash flows. What’s more every company has had certain liquidity problems with fund deficiency in certain moments of their business lifecycle. Liquiditas is here to address this particular problem and boost the efficiency of companies in managing working capital. The platform provides innovative solutions and tools that streamline liquidity management and enhance financial flexibility for businesses.
- And how does the Liquiditas’ solution work?
- The solution is pretty straightforward. It is a liquidity tool that offers buyers a way to collaborate with their suppliers and provide them with early payment options if they need to strengthen their liquidity quickly. The solution is first integrated into the buyers’ ERP system. Once this is done, Liquiditas reaches out to all of the suppliers and starts the onboarding process. After the process is complete, suppliers are ready to begin using the platform meaning they could easily request early payments for a small discount, with just one click of a button. There are no obligations and suppliers will be able to plan their liquidity as they please and avoid certain cash flow risks in the future. On the other hand, buyers will benefit from reducing the risk of future supply chain disruptions, as well as making the most out of their working capital. The solution is designed to be versatile and to offer a host of advantages. In addition to increased cash flow, buyers and suppliers can benefit from streamlined processes, enhanced mutual connections, and overall business growth.
- How does “Liquiditas” plan to create efficiency in the financial industry?
- “Liquiditas” aims to create efficiency by leveraging advanced fintech solutions created with the help of serious software tools. The platform integrates cutting-edge technologies such as automated analytics, one-click transactions, and real-time data processing. By automating processes, reducing manual intervention, and optimising resource allocation, businesses can expect to experience faster, more accurate, and cost-effective liquidity management.
- How can “Liquiditas” ensure accessibility for businesses worldwide?
- “Liquiditas” prioritises accessibility by providing a user-friendly interface. It is also designed to be accessible to businesses of all sizes, from startups to established enterprises. Additionally, the platform’s infrastructure enables businesses to access their financial data and manage liquidity from anywhere, making it particularly convenient for businesses operating across borders.
- Could you elaborate on the vision of transforming how businesses interact with finance through “Liquiditas”?
- The vision behind “Liquiditas” is to empower businesses to have more control, power, and insight into their financial operations. And this has been our premise in every business endeavor we have started, so far. By offering a tool that facilitates the supply chain finance process of both buyers and suppliers and provides them with efficient fund management and seamless transactions, we seek to redefine the way businesses perceive and manage their financial interactions. In addition, we are equipped with our own strong financial resources which allows us to support any given project no matter the size. Ultimately, Liquiditas’ digital platform aims to contribute to a future where businesses can thrive without being hindered by liquidity challenges.
- How does Liquiditas differentiate itself in the competitive fintech landscape, and what role do you play in highlighting these differentiators?
- As a fintech company, we aim to play a significant role in the market. The competition is relentless, always introducing innovative ideas and solutions. Therefore, we must stay ahead and seize every opportunity. Currently, we are proud of our fractional product, which allows our customers to balance the volume of every invoice they wish to sell. This capability is made possible because Liquiditas operates with its own capital. Our secure financial position enables us to be flexible and ensures that the automated process executes immediately. We always emphasise that our customers are just one button away from their money!
- What insights and lessons have you gained from your experience that you apply to your role as Chief Revenue Officer in guiding the company’s strategic direction?
- One of the most valuable lessons I’ve learned is the importance of understanding market dynamics. Staying ahead of trends and being aware of competitor activities is crucial. This insight helps me guide our company in identifying and capitalising on emerging opportunities while mitigating potential risks. I’ve learned that a customer-centric approach is essential for sustainable growth. By focusing on understanding and meeting customer needs, we can build stronger relationships and drive loyalty. This perspective informs our strategic initiatives, ensuring they are aligned with what our customers value most. But the team is always the one who wins and therefore effective leadership and team management are key lessons from my experience. As CRO, I focus on building high-performance teams by fostering collaboration, encouraging innovation, and providing clear direction. Empowering our team members and leveraging their strengths is fundamental to achieving our revenue goals.
- Can you discuss the importance of supply chain finance solutions in today’s market and how Liquiditas addresses these needs?
- Supply chain finance solutions are increasingly vital in today’s market due to their ability to enhance liquidity, reduce risk, and support growth. These solutions improve cash flow by accelerating receivables and extending payables, which is crucial for maintaining smooth operations and capitalising on growth opportunities. They also help mitigate risks associated with cash flow constraints, prevent supply chain disruptions, and foster stronger relationships between buyers and suppliers.
Liquiditas effectively addresses these needs through:
- Flexible Financing Options: Our fractional product allows businesses to sell portions of invoices, providing tailored cash flow solutions that fit specific needs.
- Automated Integration: Liquiditas seamlessly integrates with any ERP system, automating the approval and notification process to ensure quick and efficient access to funds.
- Security and Reliability: Operating with our own capital ensures that we provide consistent and reliable financing solutions. Our secure financial position enables us to meet our clients’ needs effectively.
In summary, Liquiditas provides a comprehensive solution that enhances liquidity, reduces operational risk, supports growth, and strengthens supplier relationships through flexible, and automated processes.
- How do you foresee the future of supply chain finance evolving, and what steps is Liquiditas taking to stay ahead of the curve?
- The supply chain finance industry is indeed evolving rapidly, driven by technological advancements and regulatory changes. One significant development we’re closely monitoring is the EU’s potential changes to legislation concerning payment terms. Such changes aim to improve the business environment and provide better tools for those most affected by current practices.
- At Liquiditas, we recognise that each new challenge presents opportunities for innovation and growth. We are actively preparing for these changes by adapting our solutions to meet future demands.
Our approach includes:
- Proactive Adaptation: We stay ahead of regulatory changes and industry trends to ensure our solutions remain compliant and relevant. By anticipating legislative shifts, we can adjust our strategies and offerings to better serve our clients.
- Enhanced Flexibility: As the industry evolves, we are developing more flexible solutions that can accommodate varying payment terms and regulatory requirements. This adaptability will allow us to support businesses through transitions and maintain their financial stability.
- Technological Innovation: We are investing in advanced technologies to streamline our processes and enhance the efficiency of our services. This includes improving our integration capabilities, automating transactions, and leveraging data analytics to provide valuable insights.
- Strategic Partnerships: We are forging strategic partnerships and collaborations to broaden our network and enhance our service offerings. By working with other key players in the industry, we aim to create a more robust and comprehensive supply chain finance ecosystem.
- Customer-Centric Focus: We remain committed to understanding and addressing the evolving needs of our customers. Our focus on delivering tailored solutions and exceptional service ensures that we continue to be a trusted partner for businesses navigating the complexities of supply chain finance.
I am genuinely excited about the future of supply chain finance and the opportunities it presents. At Liquiditas, we are dedicated to being at the forefront of this transformation, positioning ourselves as a major partner for businesses seeking innovative and reliable finance solutions.
- What metrics do you focus on to measure the success and growth of Liquiditas?
We mainly focus on these 5 metrics:
- Financial Metrics:
- Revenue Growth: Track the increase in revenue over time to assess overall business growth and market traction.
- Profit Margins: Measure gross and net profit margins to evaluate profitability and financial health.
- Cost of Acquisition (CAC): Calculate the cost to acquire a new customer to ensure efficient use of marketing and sales resources.
- Return on Investment (ROI): Assess the return generated from investments in new technologies, marketing campaigns, or other strategic initiatives.
- Operational Metrics:
- Invoice Volume: Monitor the total volume of invoices processed to gauge market demand and operational scale.
- Transaction Speed: Measure the average time taken to complete a transaction from invoice approval to payment to evaluate operational efficiency.
- Integration Efficiency: Track the number of ERP systems successfully integrated and the time required for implementation.
- Customer-Centric Metrics:
- Customer Satisfaction: Use Net Promoter Score (NPS) or customer satisfaction surveys to gauge how well your service meets customer expectations.
- Customer Retention Rate: Measure the percentage of customers who continue to use your service over time to assess long-term satisfaction and loyalty.
- Customer Lifetime Value (CLV): Calculate the total revenue expected from a customer over their lifetime to understand the long-term value of your customer base.
- Strategic Metrics:
- Market Penetration: Analyse the percentage of your target market that uses Liquiditas to assess your market share and growth potential.
- Competitive Positioning: Evaluate your position relative to competitors, including market share and differentiation in the industry.
- Innovation and Product Development: Track the success of new product features or innovations and their impact on customer acquisition and retention.
- Risk Management Metrics:
- Default Rates: Monitor the rate of default or non-payment to assess the risk associated with financing and ensure the effectiveness of risk management strategies.
- Compliance and Regulatory Metrics: Ensure adherence to industry regulations and track compliance-related issues to maintain operational integrity.
- How do you approach market expansion and customer acquisition for a fintech startup like Liquiditas?
- At Liquiditas, our approach to market expansion and customer acquisition is multifaceted, focusing on strategic partnerships, targeted marketing, and customer-centric innovation. We prioritise understanding the unique needs of our target markets and tailoring our solutions accordingly. By leveraging data-driven insights, we identify key markets with the highest potential for growth and craft targeted campaigns to reach those audiences. Additionally, we emphasise building strong relationships with industry leaders and other fintech companies to create synergies that accelerate our market penetration. Our agile development process allows us to quickly adapt our offerings to new markets, ensuring that our solutions remain relevant and competitive. Ultimately, our goal is to establish Liquiditas as a trusted partner for businesses worldwide by consistently delivering value and meeting their evolving financial needs.
- How do you ensure that Liquiditas remains agile and responsive to the rapidly changing financial technology environment and how do you stay informed on current industry trends?
- To ensure that Liquiditas remains agile and responsive in the fast-paced fintech landscape, we have embedded flexibility and adaptability into our core business practices. This begins with our commitment to continuous innovation, where we actively invest in research and development to stay ahead of emerging trends and technological advancements. Our organisational structure also supports agility, with cross-functional teams that can quickly pivot and respond to new opportunities or challenges. Moreover, we maintain close communication with our customers, gathering feedback to refine our offerings and ensure they align with market demands. By fostering a culture of innovation and responsiveness, we position Liquiditas to not only keep pace with industry changes but to lead the way in shaping the future of supply chain finance.
- When it comes to staying informed about industry trends it is crucial to monitor market developments, regulatory changes, and technological advancements through a variety of channels. This includes participating in industry conferences, engaging with thought leaders, and subscribing to relevant publications and reports. Additionally, we leverage advanced analytics tools to track market data and gain insights into emerging trends. Once identified, these trends are systematically integrated into our strategic planning process. We assess their potential impact on our business and explore how they can be leveraged to enhance our product offerings, optimise pricing strategies, or identify new market opportunities.
- What future plans do you have for Liquiditas to ensure its continued success and growth in the fintech industry?
- Looking ahead, Liquiditas is focused on several key initiatives to ensure our continued success and growth in the fintech industry. First, we plan to expand our product portfolio by introducing new features that address the evolving needs of our customers. We cannot still reveal what kind of features these are, but let’s say that they will be extremely useful for current users, and will definitely catch the attention of potential new businesses. We are also exploring opportunities to enter new markets, particularly in regions where supply chain finance solutions are underdeveloped but in high demand. Additionally, we will continue to invest in technological innovation, particularly in areas like artificial intelligence and machine learning, to further streamline our processes and improve the customer experience. Strategic partnerships will also play a vital role in our growth strategy, as we seek to collaborate with other fintech companies, financial institutions, and technology providers to create a more comprehensive ecosystem for our users. Ultimately, our vision is to establish Liquiditas as a global leader in supply chain finance, helping businesses worldwide overcome liquidity challenges and achieve sustainable growth.
