Venture executive summary framework and key components

¶ … Business Summary

Fortress Finance was incorporated in March 2012 and since then, it has been involved in the business of offering short-term loans to salaried middle-class clients in the state of New York where it maintains active presence.

TARGET CUSTOMER

The company targets the New York's salaried middle-class. The Council of the City of New York, in its 2013 Report on the State of the City's Middle Class, defines the middle class as "households with incomes between 100% and 300% of median income." As of 2013, the state's middle-class working age adults totaled almost 2 million.

CUSTOMER MOTIVATION

According to the Council of the City of New York, the middle-class was worst hit by the 2008-2009 recession. It should also be noted that in the council's own admission, New York is "one of the most expensive places to live in the country." To make matter worse, housing costs have been increasing at a faster rate than the incomes of middle-class citizens living in the state. What is even sadder is that this sorry situation is exactly the same in at least a dozen other states. This effectively means that countrywide, people are going to require funds to meet their day-to-day needs like rent payments, fuel requirements, etc.

PRODUCT DESCRIPTION

This particular short-term loan product has, for the six months that we have been in operation, been marketed as a 'payday' loan. It has also been marketed as a short-term loan facility designed to cater for the short-term financing needs of its target clientele.

KEY SUCCESS POINTS

Most of the Payday Loan facilities currently operating in the city do not have a sustainable or recognizable public profile; that is, they prefer to work from the 'shadows' and only rarely does one get to interact with such entities. Fortress Finance plans to invest heavily in advertising. This will significantly enhance its public profile, hence further growing its business.

The interest rates Fortress Finance charges are reasonable -- as opposed to those charged by some scrupulous payday lenders. This will endear the company to even the worst critics of payday loan facilities.

The operational model of Fortress Finance shortens the screening time of a borrower -- meaning that access to funds is much faster for those who are in need of the same. This is in contrast to conventional financial institutions.

REVENUE MODEL

Fortress Finance offers loans to its target clientele at a daily interest of 0.10% for the amount borrowed. This translates to an APR of 48%.

KEY COMPETITORS

Mainstream Financial Institutions

Other Payday Lenders

INVESTMENT CAPITAL

Founders (two in number) have invested a total of $2,000,000 in the business. We are currently seeking $5,000,000 to further increase our lending base and expand to other states.