Floan

Idea

Introduction

Floan is a start-up business currently developing our MVP. The MVP is a budgeting tool to help people travel, which will offer the functionality of paying for flights on a monthly basis. We are a fusion of tech start-up and broker for the travel sector, with a focus on point of sale finance for flights on behalf of the environmentally conscious.

Floan intends to enable individuals across a range of credit scores to spread the cost of purchasing a flight over time. Payment terms will be tailored to the individual but will typically offer monthly repayments over 3 - 18 months. Repayments will be structured on an easy-to-understand monthly basis.

Our aim is to create a budgeting tool to enable affordable travel, whilst being environmentally conscious. Floan aims to be one of the first facilitators of affordable acquisition of flights, offering customers the option to offset through various carbon sequestering projects. As we are making it easier to access the world of long haul flights, we feel it is imperative to do our bit.

Substantial accomplishments to date

Identifying a gap in the market.

Aiming to pioneer flight finance.

Building a relationship with a banking partner, so that we are ready to roll out an MVP upon close of capital.

Getting a heavy hitting chairman to join the team.

Building a Seed business in a pandemic that is ready to take on the world.

Monetisation strategy

Floan’s commercial business model is simple. We plan on creating revenue through charging a booking fee of £35, on any business generating activity through our website/ platform. We believe this is a price that customers will be willing to pay in return for the ability to receive a premium service allowing for them to take advantage of better budgeting ability.

We believe the appetite for Floan is limitless as it captures a huge cross section of both ages and demographics. The largest demographic of potential customers is the “prime & near prime” market place; young professionals and families, who may not have the £1,000 to £5,000 to pay upfront for a return flight (young families having to consider 3-5 tickets in each purchase) but would certainly be able to afford the, say, £200 a month for their Floan.

At £35 per booking, which is included in the low % APR calculations, we will be offering a service that we expect to be more affordable than that of the credit card, who we see as our main competitor.

Use of proceeds

Phase 1: will focus on building the technical capability to service our market effectively across our web platform and on strategies to commercially break into the travel market. The key strategic aim of Floan is to become the consumer brand of choice in the market by driving disruption and being capable of handling the volumes and partner subscriptions; success here would prove the platform concept. Floan has the ultimate goal of developing a platform that has functionality and brand power to add a button on all flight sales websites.

Expected Costs - Year 1 (Pre Seed raise):

(a) Branding - 1.5%


(b) Advisory Costs - 13%

(c) 
Legal and Compliance - 20%


(d) Commercial Consultant Strategic Report - 10%


(e) SEIS / EIS Advance Assurance- 0.5%


(f) Expenses- 13%


(g) Web Development - 26%


(h) Accountancy / CFO - 2%


(i) Marketing - 4%


(j) Contingency Budget - 10%