Capital Network
Participation inside the ledger, not beside it.
For the factor with more good paper than capital, and the one with capital and not enough paper. The Capital Network lets FactorFox factors sell and buy participations in each other's receivables, as a transaction the platform lists, documents, books and settles itself.
Available today between FactorFox customers. Outside capital providers are on the way.
Why this exists
Participations usually live in a spreadsheet, an inbox and two sets of books that disagree.
The credit is the easy part. The expensive part is everything that happens after the handshake.
From listing to settlement
Six stages, and people approve the ones that move money
- 01
List
The originator lists an opportunity from its own book and decides who can see it and on what offering rules. The list of who it was offered to never leaves the originator.
- 02
Discover
Capital providers set mandates for what they want to buy, and the network signals fits to both sides. A signal is computed from each party's own book and the anonymized listing, never from anyone else's.
- 03
Simulate and commit
The participant models the position before anything is binding, registers interest, moves through disclosure, and commits.
- 04
Document
The participation documents are generated from the commitment, executed, and stored beside it, so the paper and the booking can never describe two different deals.
- 05
Fund
Funding is approved and then confirmed by people. The confirmation posts on both books, each on a connection bound to that book.
- 06
Service and settle
Receipts run the waterfall as they post. Settlements are calculated, approved, confirmed against the bank and reconciled, each as its own recorded step.
What is underneath it
Built as financial infrastructure, not as a marketplace
A participation passport
Measured facts about a participant rather than a questionnaire: liquidity read from its own general ledger and exposure read from the participation subledger.
A ledger both sides read
Every action is written to a dual party audit record that both counterparties see, and mirrored into each firm's own log.
Treatment on the record
The legal and accounting configuration that governs a transaction is stored with it, so the treatment a deal was booked under is never a matter of memory.
Multi currency
Opportunities carry their own currency, FX rates are recorded, and US and Australian opportunities sit side by side under local rules.
Signals
The network tells an originator when its paper fits a mandate and tells a capital provider when an opportunity fits what it asked for, and records what it said.
Compliance view
Participations appear in the compliance view with everything else, rather than in a side system your examiner has never heard of.
Why inside the operating system
The ledger is the reason it works.
A participation marketplace that sits beside your software has to be told what happened. It learns about a payment when someone uploads a file, and it learns about a reversal when someone remembers. Two books drift, and the drift is found by an auditor.
The Capital Network is inside the same operating system that holds the invoices, applies the cash and keeps the double entry ledger. So a participation is not a report about your book. It is a transaction in it, and the participant's position moves because the underlying receivable moved, not because a spreadsheet was updated.
Straight answers
What a credit committee asks
Who can take part today?
FactorFox customers, on both sides. A factor can originate an opportunity from its own book, take a participation in another factor's, or both. Banks, funds and other outside capital providers are coming next, and the identity and permission model was built for them from the start. If you are one and want to be early, say so on the demonstration request.
Does the participant see my client list?
No. An opportunity lists anonymized. Nothing on the card names the client or the debtor, and you can choose to mask your own name as well. More is revealed in levels, and each level is a dual party record both sides agreed to. A participant sees the client only once that level has been reached, and the screens are built so that a response can never carry more than the disclosure level allows.
Is this treated as a participation or as secured financing?
That depends on the transaction and on your counsel's view, and we do not give legal advice on how yours should be characterized. What FactorFox does is store the governing legal and accounting configuration with each transaction and book it accordingly, including sale treatment where that is the configuration. The treatment a deal was booked under is therefore on the record, not reconstructed later.
Does anything move money automatically?
No. Funding is approved and then confirmed by people, and settlements are calculated, approved, confirmed against the bank and reconciled as separate steps. What is automatic is the arithmetic: when a receipt posts, the participant's share is worked out and booked without anyone recalculating a waterfall in a spreadsheet.
How is it priced?
Per transaction, and we walk through it on a call rather than publishing a rate card, because negotiated schedules exist and a public number would misstate them. Every fee is charged against a versioned schedule, so any fee ever charged can be recomputed against the schedule that governed it at the time.
What about opportunities in another country?
They sit side by side. Opportunities carry their own currency, with US dollars, Australian and New Zealand dollars, Canadian dollars, pounds sterling and Mexican pesos supported, and FX rates are recorded rather than assumed. A US factor and an Australian factor can see each other's opportunities under local rules.
Bring the paper you would sell, or the capital you would deploy.
We will walk through a listing, a disclosure and a settlement on the platform, and go through pricing for your volume.