• [00:00:00] Introduction
• [00:01:07] Introducing Finrack
• [00:01:20] Why inventory financing has become a strategic business challenge
• [00:03:16] How the Finrack platform works
• [00:03:43] An innovation with virtually no competition
• [00:04:07] The commercial challenges of a fintech
• [00:04:58] Distribution channels and the role of financial intermediaries
• [00:06:03] Finding the right customers
• [00:06:19] Why the French market is more receptive
• [00:06:48] Convincing private investors
• [00:07:27] Essential sales skills
• [00:07:52] Building long-term customer loyalty in a digital environment
• [00:08:34] The mantra "Underpromise & Overdeliver"
• [00:08:47] Why Finrack works with PHCom
• [00:10:09] Confidentiality and trust in business financing
• [00:10:42] Cold calling as a business development strategy
• [00:11:19] Finrack's future ambitions
• [00:11:43] Finrack's inventory valuation algorithm: a unique competitive advantage
• [00:13:08] Conclusion

[00:00:13] Stéphane Depaepe: Hello and welcome to this new episode of the podcast "Performance, Harmonie & Commercial", produced by PHCom in the transforma bxl studio, with technical support from "The Podcast Factory Org"

[00:00:23] Nadia Ben Jelloun: The "Performance, Harmonie & Commercial" podcast is intended for marketing and sales managers, as well as business leaders with commercial roles.

[00:00:32] Stéphane Depaepe: Every month, we share with you best practices in searching for new clients for businesses active in business-to-business.

[00:00:38] Nadia Ben Jelloun: You can find each episode on the PHCom dot be website. P.H.C.om, and also on all good podcast platforms.

[00:00:47] Stéphane Depaepe: You can support this podcast and promote its visibility by sharing it with as many people as possible via a like, a comment, a share.

[00:00:55] Nadia Ben Jelloun: The voicemail is still active so you can leave us a message, we'll answer with great pleasure.

[00:01:00] Stéphane Depaepe: You can also book an appointment directly with Nadia or Stéphane by going to PHCom dot be.

[00:01:06] Nadia Ben Jelloun: See you soon.

Introducing Finrack

[00:01:07] Camille de Meeûs: Hello David.

[00:01:08] David Van der Looven: Hello Camille.

[00:01:09] Camille de Meeûs: We are super happy to welcome you today to our PHCom podcast. So, here we are going to talk about business development and your activity. What do you actually do at Finrack?

Why inventory financing has become a strategic business challenge

[00:01:20] David Van der Looven: Finrack is a Belgian Fintech based in Brussels, which has found an innovative solution to finance stock.

[00:01:29] Camille de Meeûs: What do we mean by stock, concretely?

[00:01:31] David Van der Looven: All the material that is stored for a company's production or sale. In fact, the stock was on the road; it was the just-in-time principle. And when Covid hit, we have seen global inventories rise ever since. There was Covid, which obviously disrupted the transport chain, but afterwards plenty of events reinforced this trend. There was the big ship that blocked the canal with its containers, there is the war in Ukraine, and then geopolitically there is a tendency to stockpile things that have become a bit scarcer, so that's why inventories are rising globally. When we looked into whether it was financeable, we saw that there are very few tools to finance a company's inventory. And a company's inventory is ultimately capital—money that is tied up and cannot be used for working capital, to grow the company. So, we started looking for a solution for this, and actually what Finrack does is inventory sale and buyback. So, Finrack buys the company's inventory, and gradually the company can buy back its inventory at the same price. What is fundamental is the valuation, because behind it there are investors who put up their money, and it is with this money that we buy the inventory at a valuation that Finrack will perform. Because we need to protect our investors; if the company runs into trouble and goes into liquidation, well, ultimately the repurchase option, which is exclusive to the seller, will become void, and Finrack will have to sell this inventory to compensate its investors.

How the Finrack platform works

[00:03:16] Camille de Meeûs: And how do all these exchanges, all these partnerships work? Is it through a platform that you have created?

[00:03:21] David Van der Looven: Of course, it's an online platform; everything happens online. Also for inventory tracking, we build connectors with the digital inventory management tool, so we have real-time information on the inventory. How it moves, what is sold, what comes in, so we actually monitor this inventory in real-time.

[00:03:41] Camille de Meeûs: Is there a lot of competition in this field?

An innovation with virtually no competition

[00:03:43] David Van der Looven: When you look at it, there are almost no inventory financing tools; it is something that hasn't really been addressed. So no, there is almost no competition; it is something innovative and new.

[00:03:54] Camille de Meeûs: So we can feel there is a real need then (David Van der Looven: Exactly, exactly), you arrived at the right time?

[00:03:57] David Van der Looven: Exactly, exactly. Because a company that has freed up the funds locked in its inventory can do other things, such as focusing on the company's growth.

The commercial challenges of a fintech

[00:04:07] Camille de Meeûs: Now we are going to talk more about the commercial aspect within Finrack. What are the current challenges?

[00:04:13] David Van der Looven: The biggest challenges for every startup and also Fintech is finding distribution channels; that is the major weakness of a Fintech compared to banks. They have a huge client network, while we come in with a new product that we have to bring to market, but we also need to find distribution channels, sales channels that are profitable. At Finrack, we've been very pragmatic; we launched in several countries, we've been active since September 2024, and we try to work as much as possible with financing intermediaries. As a result, they are paid a commission, and for us it is a variable cost, so that is very advantageous for developing the company. If there are no sales, there are no costs. If there are sales, you pay a commission but you have revenue coming in. And we can see that in Europe, in the countries where we are present—the Netherlands, Belgium, Luxembourg, France—it has developed very strongly in France. So an entrepreneur in France will consult, yes, their bank, but alongside that, they will consult independent intermediaries specialized in business financing. So, there is strong traction there, and I must also say, I previously ran another Fintech and we had already developed this network, so we are partly falling back on this same network. And that is mainly our area of development today. Another area is neobanks looking for interesting services for their clients, and obviously everything related to digital distribution channels. It's a bit more complicated because there you often have to invest a lot upfront, without knowing what will come out of it and when. So we do a bit of both, but in a moderate way. But our strongest traction is the network of professional financing intermediaries, let's say.

Finding the right customers

[00:06:03] Camille de Meeûs: And so in your field, finding the right clients at the right time takes time, I imagine?

[00:06:08] David Van der Looven: It takes time, yes, it's an investment, indeed.

[00:06:11] Camille de Meeûs: We were just talking about France. How can we explain this difference in commercialization? Why is it, quote-unquote, easier in France than in Belgium? Because it's a larger country? Because...

Why the French market is more receptive

[00:06:19] David Van der Looven: Not necessarily that, it's a bit of a mindset. But there is also a reality: if we take the example of Belgium, we have a near-monopoly of five banks serving the market, and serving it quite well. In France, it's a completely different situation. And that means that the entrepreneur there, first of all, I find them to be more digital, and second of all, since the French banking market is not as well-served as in Belgium, they are looking.

[00:06:45] Camille de Meeûs: So there is more of a need, actually?

[00:06:47] David Van der Looven: There is more of a need, yes.

Convincing private investors

[00:06:48] Camille de Meeûs: What is your greatest commercial success?

[00:06:50] David Van der Looven: Finrack's greatest commercial success is not on the side of the inventory sellers—those are the parties who need money. But I would say it's more on the investor side, private investors, also organized as companies, who are ready to put their money into buying inventory. Since Finrack is young—we started in September 2024—we don't have a long track record there. So really, the greatest commercial success is succeeding in convincing investors to put their money into purchasing inventory.

Essential sales skills

[00:07:27] Camille de Meeûs: What sales skills seem essential to you today?

[00:07:30] David Van der Looven: As a Fintech and a startup, we are quite flexible, we aren't rigid, so on the inventory seller side, we are a young company with an innovative concept, and we adapt to clients as we go. What are the actual needs in the market? You shouldn't create a very rigid product; you need to adapt it gradually to the real needs of the market.

Building long-term customer loyalty in a digital environment

[00:07:52] Camille de Meeûs: Speaking of clients, how do you retain your clients over the long term?

[00:07:57] David Van der Looven: Providing good service. If customers are well served, even if you are more expensive than the others, they stay longer, that's it. And of course, even if we are a digital company, it's about having a certain direct presence. It's not physical, but calling your clients from time to time to see if everything is okay, to maintain the connection, is super important.

[00:08:21] Camille de Meeûs: To have real flexibility, availability.

[00:08:24] David Van der Looven: The biggest compliment is when a client tells you, "Yes, we work digitally, we've never met. But there's human warmth behind this digital company."

The mantra "Underpromise & Overdeliver"

[00:08:34] Camille de Meeûs: David, do you have a quote, or a punchline, or a mantra that you like in sales, something that you repeat often?

[00:08:40] David Van der Looven: The main thing for a successful sale is very simple: underpromise and overdeliver, you have to manage expectations well.

Why Finrack works with PHCom

[00:08:47] Camille de Meeûs: Okay, awesome. Now we're going to talk about the collaboration with PHCom. Finrack has existed since September 2024, when did it start with PHCom and why did you reach out to PHCom?

[00:08:56] David Van der Looven: Finrack started in September 2024, so obviously we are beginning to look at how to develop the sales side. What was most obvious for us was the networks of independent financing intermediaries, credit and financing brokers. But obviously we are also looking to develop digital channels, and we have also looked at other possible channels. One channel was cold-calling, trying to get data on companies, and sorting this data in such a way that we reach potential clients who have a desire to finance their inventory. And that is how I got in touch with PHCom in early 2025. We did a test in Belgium, on a sample of companies, and it was not very conclusive at first. It must also be said that our sales cycle is quite long. But anyway, there were some initial results, so we decided, at the end of 2025, to run a second test that is currently underway, and which is focused more on France, as we know that this target audience in France is much more interested because they are underserved. And so, it's underway.

Confidentiality and trust in business financing

[00:10:09] Camille de Meeûs: Everything related to financial aspects and investments, those are still quite touchy subjects. Is there a specific way to approach these people?

[00:10:16] David Van der Looven: Yes, it's touchy, but those who need financing are ready to do whatever it takes. Of course, we also work with non-disclosure agreements, so that the client's data is well protected. In practice, it's not something that creates a major bottleneck, no; the client wants to get financing, and if we set up the framework properly with the non-disclosure agreement, it goes over quite easily, yeah.

Cold calling as a business development strategy

[00:10:42] Camille de Meeûs: Do you think that working with PHCom has allowed you to save time, in a certain sense?

[00:10:47] David Van der Looven: Certainly because cold-calling is really a very specific line of work. First of all, finding people to do that yourself is no easy task. And obviously, by working with PHC om and doing tests, we don't really invest in it; instead, it is once again a variable cost. So, having a partner who specializes in cold-calling and whom you can call upon on an ad hoc basis... It is much more advantageous for a young company like ours.

Finrack's future ambitions

[00:11:19] Camille de Meeûs: What is your next ambition, your next sales objective? What can we wish you?

[00:11:23] David Van der Looven: That the second test with PHCom shows results that will allow us to keep working this channel, which would obviously be an additional channel. The ultimate goal of Finrack is obviously growth, and also to evolve towards a SaaS model, so that it is simple plug-and-play for our clients.

Finrack's inventory valuation algorithm: a unique competitive advantage

[00:11:43] Camille de Meeûs: What is Finrack's main strength today?

[00:11:45] David Van der Looven: The very unique thing about the Finrack model is the valuation algorithm we developed. So, this algorithm makes it possible to determine the purchase price of the inventory from the inventory seller, from the client seeking financing. But it must also protect investors, ensuring that the inventory they put their money into and its purchase price hold up. And ultimately, what do we need to do with this valuation algorithm? It is to have a price that allows us, if the seller ever goes into liquidation, to know we can sell this inventory in the short term at at least the price we bought it for, to compensate the investors. And this doesn't exist anywhere else in the market. We have no sector restrictions, so we deal with any kind of inventory—it's very diverse—and the expertise we are developing with this algorithm is being able to value any inventory at a suitable price. And we can see that a few banks are already approaching us, and they are interested in this exact algorithm, because today they sometimes grant credit based on the business assets where the inventory is also located, but they have no idea of the value of that inventory. It's a bit like, they take the balance sheet, which is a snapshot of the inventory at a certain point in time, but tomorrow it could be different; they don't have this capability to track the inventory in real time, so there you go.

Conclusion

[00:13:08] Camille de Meeûs: Thank you, David.

[00:13:09] David Van der Looven: Thank you, Camille.