Introduction

Lenders, referred to as Originators, are typically fintech companies whose core strengths lie in marketing and product design rather than lending. They are responsible for acquiring and qualifying borrowers. Originators underwrite borrowers based on eligibility criteria established with the protocol, considering factors such as the borrower’s growth potential and business reputation, rather than relying on traditional credit scores.

These loans, or receivables, are then purchased by capital pools, creating a decentralized forward flow model. In this model, Originators can either fund the initial loan from their own balance sheet or disburse funds to the borrower after the capital pool has purchased the receivables.

Rather than using a traditional user interface, the protocol employs a generative AI called "Poe." Poe asks a series of questions to gather detailed information about the originator and their credit product. This process establishes a credit box, defining the eligibility criteria for receivables purchased by the originator’s portfolio-associated capital pools.

As Poe gathers information, it shares the data with the protocol, which evaluates it and generates a proposal delivered by Poe to the originator. Unlike traditional debt funds, which require labor-intensive processes and complex terms, this proposal is straightforward and based on an exchange ratio for future borrower revenue.

Once the originator approves the proposal and completes verification, they are required to maintain a reserve of SVO, creating skin in the game and mitigating risk at the originator level. Originators also pay a subscription fee, which covers borrower verification and ongoing fraud checks. Learn more about this in the following sections.

Learn more about operating as an Originator in the following sections, visit our knowledge base, or ask Poe at sivo.xyz.