Databased Finance uses verified data to price and purchases physical inventory on behalf of our community of investors.
We help Amazon Sellers by providing fairly priced funding to Brands with a history of sales but who lack the capital to forward position enough inventory with Amazon to sustain their momentum.Previously this has left Sellers subject to predatory loan practices with equivalent APRs that can exceed 100% for shorter-term loans. With the DAI Community's help, Sellers can now join the financing pool and see, on-chain, the cost of their capital and their relative ranking against all the other brands that have signed up. The better the ranking, the lower their cost of capital.
On average, brands generate a 12% APR return allowing us to reward the TIN and DROP backers.
When Databased Finance agrees to buy the inventory, we pay a percentage of each line item's historic (after Amazon fees) sales price.While there are risks involved in any business financing, this buffer of extra stock allows us to discount the items or pay an agent to sell them on Amazon if we are forced to take physical possession of the inventory we have purchased. However, in normal operations, we never take possession. Instead, the Amazon Seller pays us a 30-day limited sales right fee and carries on selling. With access to the Amazon Sellers data, we can see them increase the stock they have on hand through better replenishment cycles. This moves them up the Amazon rankings and allows them to grow their business to the next level.
|Company Name||Databased Finance Limited|
|Asset Type||Amazon Sellers' Inventory|
Please give a brief history of the company and, if applicable, group structure.
Database Finance Limited is a Hong Kong Company that exists to buy inventory on behalf of the Community and issue the TIN and DROP tokens used to finance those purchases in a revolving TinLake pool.
Track One Limited is a Canadian Federal and BC company that verifies inventory for the Databased Finance Community. Sellers grant access to their Amazon Accounts, so Track One can verify the sales history and current inventory levels. Amazon prevents sellers from sharing this data for external use, so Track One operates as an Oracle for the community by checking that the NFT’s are still valid and that the inventory purchased is actually in Amazon’s Fulfillment Centers.
Please give an overview of the legal structure.
www.database.finance Limited offers promissory notes for sale to investors, corresponding to payment obligations owed to the Issuer by various Amazon Sellers connected with Brands on Amazon. Payments for and distributions to promissory notes are managed through the issuance of DROP and TIN tokens on the Centrifuge Chain via the Tinlake Platform.
As well as paying its promissory note obligations out of the Sales Fees generated, Databased Finance also pays Securitize.io to perform KYC and AML services and Track One Limited to verify the data in each Amazon Sellers Account for historical prices and current inventory levels.
www.Track.one specializes in inventory verification. It is one of seven companies authorized to electronically verify any Pharmaceuticals sold in the United States with the Manufacturers' Source of Truth' as part of the FDA's implementation of the Drug Supply Chain Security Act. It operates under a Build, Operate, Optimize, Support, and Transfer contract adding functionality under agreed milestones development cycles. It also receives a fee from Databased Finance Limited based on the pool size to cover the data storage and any ongoing operational costs for data verification.
How many full-time equivalent team members do you have and what do they do?
Databased Finance has a single Director. It uses a corporate Company Secretary to manage filings and ensure continued operation if the Director becomes unable to manage the company. It engages the services of Fastlane Limited for Accounting and is subject to annual audits.
Track one Limited has three directors, two full-time and one non-executive. It uses multiple IT development teams in the US, Hong Kong, and Vietnam.
Have you sold equity? Are you venture funded, if so please describe the previous rounds, money invested, and lead investors.
Both Companies are privately funded.
Describe the asset collateral that you seek to finance.
Amazon Brand Sellers Inventory.
Describe your previous track record related to this business proposal.
We have built and own the IP around multiple inventory-based tracking, verification, and financing technologies. Track One software is interoperable and tested by SAP, Tracelink, Rfxcel, Mediledger, and Movilitas. Stress testing was carried out directly by Cardinal Health, and the platform is now connected to >98% of the US's Pharmaceutical Manufacturers.
What is the average collateral asset size?
We look for Sellers who have had proven sales of >$10000 in a month with at least one year of sales history.
In our first two sales cycles, the brand's average collateral size was $40,000, with average financing at $25,000.
In our third cycle, this jumps to $83,000 average collateral and $65,000 average financing.
We expect each brand's financing to grow in incremental steps as they replenish more regularly. The pool will also grow as new brands join.
Describe the risk of the assets you are proposing. How do you evaluate and manage that risk?
By financing an inventory purchase, we can take physical possession of the items and have our agents sell them. While there is a risk that Amazon may take time to execute this transfer or dispute it, we have our sellers pre-sign a physical delivery note and the purchase order, and the sales contracts to facilitate a smooth delivery. The aim is that we never have to take physical possession. To manage the risk of this eventuality, we apply multiple controls backed by the data. By analyzing each item's sales history and only paying a percentage of the average net sales revenue to buy all that brand's inventory, we ensure that the collateral's value exceeds the purchase price. By choosing brands with long trading history, we know their owners have invested time and effort to get their brand to its current sales level. And because we are buying inventory, our purchases are always below the revenue generated from running the Amazon Seller business - meaning all Sellers make more money if they choose to continue to sell than if they choose to transfer the physical inventory to us. A more comprehensive list of potential risks is part of the Token agreement and should be studied carefully before any investment is made.
Please describe any conflicts of interest or potential conflicts of interest or any relationship that could compromise or be viewed to compromise the decision making of the company.
Track One, the asset verifier and Databased Finance Limited, the Asset purchaser share a common Director, while initially this allows the smooth onboarding of new brands, eventually it will be beneficial to have a separation between the purchasing decision maker and the data verifier.
Are there or have there in the last 10 years, been any criminal, civil, regulatory or administrative proceedings against (i) the Company or any of its principals or (ii) the product in any similar such matters including reparations, arbitrations, and negotiated settlements? If so, please describe.
Are there any further disclosures that interested party should be aware of?