1.11 Business-model comparison matrix
A single grid summarising every model in Section 1. For full detail on any row, click through to the model page.
Money, risk, customer
Section titled “Money, risk, customer”| Model | Loan booked on | Credit risk | Customer of record | Underwriting owner |
|---|---|---|---|---|
| Own-book NBFC | NBFC | NBFC 100% | NBFC | NBFC |
| Co-lending (CLM-1) | Both lenders | Per ratio (e.g. 80:20) | Originating NBFC (single interface) | Both, layered |
| Co-lending (CLM-2) | Originator first, assigned to partner | Per ratio | Originating NBFC | Both, layered |
| LSP model | Partner RE | Partner RE (LSP can layer <= 5% DLG) | Partner RE | Partner RE |
| Marketplace | Selected lender | Lender | Lender | Lender |
| Managed credit / AUM | NBFC or SPV | Investors (less equity tranche) | NBFC / SPV | Platform |
| Embedded lending | Partner RE / own NBFC | Lender | Lender (disclosed) | Lender |
| Supply-chain finance | NBFC (often co-lent) | NBFC (anchor may DLG <= 5%) | NBFC | NBFC |
| Invoice discounting / TReDS | NBFC | NBFC | NBFC | NBFC |
| Working-capital line | NBFC | NBFC | NBFC | NBFC |
| Term loan | NBFC | NBFC | NBFC | NBFC |
| Secured (LAP, equipment, etc.) | NBFC | NBFC (collateral-cushioned) | NBFC | NBFC |
| Anchor-led ecosystem | NBFC (often co-lent) | NBFC + anchor DLG | NBFC | NBFC + anchor signal |
| White-label / SaaS LOS-LMS | Partner NBFC | Partner | Partner | Partner |
| Distributor / dealer / vendor finance | NBFC | NBFC + anchor DLG | NBFC | NBFC + anchor history |
| DSA / origination-only | Lender | Lender | Lender | Lender |
| CA / Tally-led origination | Own NBFC or partner RE | Lender | Lender | Lender (data-driven) |
Regulatory shape
Section titled “Regulatory shape”| Model | NBFC licence needed? | Digital Lending Guidelines apply? | DLG cap relevant? | Special regs |
|---|---|---|---|---|
| Own-book | Yes | Yes if digital | No | SBR, IRACP |
| Co-lending CLM-1/2 | Yes for originator | Yes if digital | Yes (5% cap on DLG) | RBI CLM guideline |
| LSP | No | Yes (LSP is RE’s agent) | Yes (5% cap if DLG) | Outsourcing |
| Marketplace | No | Yes | No (no DLG in pure marketplace) | Loan aggregator rules (Apr 2024) |
| Managed credit | NBFC + AIF | Yes if digital | Maybe (if equity tranche acts as DLG) | SEBI AIF Regs |
| Embedded | NBFC (or LSP) | Yes | Possible | Outsourcing |
| SCF (non-factoring) | NBFC | Yes if digital | Yes (anchor DLG) | Factoring MD if factoring |
| Invoice discounting (factoring) | Factoring registration or NBFC factoring approval | Yes | Yes | Factoring Reg Act 2011/2021 |
| TReDS | TReDS financier onboarding | N/A on exchange itself | N/A | TReDS framework |
| Secured | NBFC | Yes if digital | Yes | SARFAESI, CERSAI |
| Anchor-led | NBFC | Yes | Yes | Outsourcing for anchor data |
| White-label / SaaS | No (you’re tech provider) | Applies to the customer | N/A | Tech provider has limited reg perimeter; customer has all |
Capital and scalability
Section titled “Capital and scalability”| Model | Capital intensity | Capital turn (per year) | Scalability bottleneck | Realistic 3-year book ceiling |
|---|---|---|---|---|
| Own-book WC | High | 4 – 8× (WC) / 0.5 – 2× (term) | Equity + debt raise | ₹100 – 300 Cr |
| Co-lending | Low (own share only) | Same as own-book per share | Partner appetite + integration cycle | ₹500 Cr – ₹2,000 Cr |
| LSP | Very low | N/A (fee model) | Partner integrations + disbursal volume | Volume-bounded |
| Marketplace | None | N/A | Conversion, competition | Volume-bounded, low contribution |
| Managed credit | Low | Investor capital | Fundraising cycle | ₹500 Cr+ |
| Embedded | Low | Same as underlying lender | Partner count | Volume-bounded |
| SCF / anchor-led | Moderate | 6 – 12× (very high turn) | Anchor count, anchor concentration | ₹300 – 1,000 Cr |
| Invoice discounting | Low | 8 – 12× | Invoice volume, fraud control | ₹100 – 300 Cr |
| Secured (LAP) | High | 0.5× | Capital + ops scale | ₹100 – 300 Cr |
| White-label / SaaS | Tech investment | N/A (fee model) | Sales cycle, multi-tenancy maturity | Customer-bounded |
Operational complexity
Section titled “Operational complexity”Scale 1 (simple) to 5 (very complex):
| Model | Origination | LMS | Collections | Reporting / compliance |
|---|---|---|---|---|
| Own-book term | 2 | 2 | 2 | 3 |
| Own-book WC line | 3 | 4 | 3 | 3 |
| Co-lending | 4 | 4 | 3 | 5 |
| LSP | 3 | 2 (RE owns LMS) | 4 | 4 |
| Marketplace | 3 | 1 | 1 | 3 |
| Managed credit | 4 | 4 | 3 | 5 (SEBI overlay) |
| Embedded | 4 (partner SDK) | 3 | 3 | 4 |
| SCF / anchor-led | 4 (anchor file flows) | 4 | 3 | 4 |
| Invoice discounting | 4 (invoice validation) | 4 | 3 | 4 |
| TReDS | 3 (exchange handles) | 3 | 1 (exchange settles) | 3 |
| Secured (LAP) | 5 (legal, valuation) | 3 | 4 (SARFAESI) | 4 |
| White-label / SaaS | 4 (multi-tenancy) | 4 | 4 | 5 (tenant-scoped + own) |
Fit for the SME WC wedge
Section titled “Fit for the SME WC wedge”Fit scoring for: SME working-capital, ₹20 – 50 lakh tickets, 60 – 180 day tenure, repeat borrowers, CA / Tally / GST / anchor origination.
Scale 1 (poor fit) to 5 (excellent):
| Model | Fit | Notes |
|---|---|---|
| Own-book NBFC | 5 | Foundational. The wedge runs on this. |
| Co-lending CLM-1 | 5 | Required scale lever beyond ₹50 Cr book. |
| LSP | 4 | Complementary fee line. |
| Co-lending CLM-2 | 3 | Useful but operationally heavier than CLM-1. |
| Embedded (CA/Tally/anchor) | 5 | Native distribution. |
| Distributor / vendor finance | 5 | Natural extension. |
| SCF / anchor-led | 4 | Second wedge once core book is live. |
| Invoice discounting / TReDS | 4 | Layered product. |
| Working-capital line (product) | 5 | The product. |
| Term loan (product) | 3 | Layered product. |
| Marketplace | 1 | Wrong economics, wrong customer behaviour. |
| Managed credit / AUM | 2 | Year-3+ play. |
| Secured (LAP / equipment) | 2 | Year-3+ layered product. |
| White-label / SaaS | 2 | Year-2+ second business. |
| Anchor-led full ecosystem | 4 | Year-2 extension. |
| Cash-flow / merchant loans (POS-based) | 2 | Distracts from SME focus. |
| DSA / origination-only | 3 | Layered channel. |
The recommended composition
Section titled “The recommended composition”For the launch state:
Own-book NBFC + CLM-1 co-lending with one bank partner + LSP-style fee line + CA/Tally embedded distribution + working-capital-line as the primary product.
By month 12:
Add an anchor-led distributor finance programme and an invoice-backed line product. Begin discussions with a second co-lending partner.
By month 24:
Productise the platform for one external SaaS customer; add LAP for top-tier repeat borrowers.
Full details in Section 12 — MVP roadmap and Section 15 — Final recommendation.