Factoring marketplace: why a qualified retail investor should care
Yields 6 to 15 %, durations 30-90 days, real receivables from verified businesses. An alternative asset class finally accessible to qualified retail investors.
The factoring market by the numbers
Global factoring weighs around USD 3.2 trillion (FCI 2024), with steady growth (+6 % CAGR over 5 years). Historically it's been an asset class reserved for institutional factors (bank subsidiaries, specialised firms) that capture most of the margin.
P2P factoring marketplaces have been opening this asset class to qualified retail investors since ~2018. Tauraco fits in that trend with a unique angle: simultaneous focus on Europe and francophone Africa.
Why it's attractive for retail
Documented yields. Over the last 14 months, the Tauraco aggregate portfolio shows an average net yield of 9.4 % annualised, with a default rate below 1 %. Grade A: 6-8 %, Grade B: 8-12 %, Grade C: 12-15 %.
Short durations. Factored invoices have 30-90 day maturities. No 5- or 10-year capital lock-up like private equity or buy-to-let. Fast rotation allows reinvestment or exit within months.
Decorrelation. Factoring performance is weakly correlated with listed markets. A correction on the CAC 40 or S&P 500 doesn't directly affect an SMB's ability to pay an invoice it owes anyway (absent a severe recession).
Real impact. Each investment directly funds an SMB. You know who: name, sector, country, what it produces. That speaks more than buying an MSCI World ETF.
The risks to understand honestly
Default risk. If the buyer (the invoice debtor) doesn't pay, the investor can suffer a partial or total loss. The numbers shown (default rate, recovery) are historical — they don't guarantee the future.
Concentration risk. Going all-in on 3 invoices concentrates risk. Recommended Tauraco rule: max 5 % of portfolio on a single invoice, and diversification by grade, sector, geography.
Liquidity risk. No large secondary market — your capital is locked until maturity. If you need cash sooner, this isn't the right vehicle.
Operational risk. Fraud (cf. our anti-fraud piece) or platform failure. Tauraco has strong mitigations — systematic KYB, annual audit, segregated funds — but zero risk doesn't exist.
How to invest concretely
- Sign up + KYC on /investors/signup — 10 min
- Identity check via Stripe Identity — 24 h
- Funding via SEPA, international wire, or USD/EUR/XOF
- Invoice selection on the marketplace, filters by grade, duration, sector, country — or smart auto-allocation
- Settlement automatic at maturity, taxation documented
Who it's NOT for
- Investors looking for guaranteed yield — doesn't exist here
- Emergency / contingency capital — lacks liquidity
- Novices with no risk appetite — this class requires understanding short-term credit
- Net worth below €50k — minimum diversification can't be reached at that size
Going deeper
- Browse current opportunities: /market
- Understand the A→E AI scoring
- Read the official risk warning