FINTECH
PAYTECH
About Module IX
Module IX examines alternative financing options available to European SMEs. It covers crowdfunding, invoice discounting, factoring, revenue-based finance, angel investment, venture capital, trade credit, EU grants, blended finance and FinTech lending. Learners compare costs, speed, risk and regulation, then build an integrated capital strategy suited to business stage, cash flow and growth plans.
What You Will Learn
After the end of Module I, you will be able to:
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Knowledge 6
Identify and explain the main alternative financing options available to European SMEs – crowdfunding, P2P lending, invoice finance, factoring, RBF, angels, VC, grants, fintech lending.
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Knowledge 6
Understand the EU regulatory framework relevant to SME financing – ECSPR, ViDA, AI Act, Late Payment Regulation, Listing Act, AMLR, DORA.
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Skill 6
Evaluate the suitability of different financing methods for specific SME scenarios through analytical reasoning.
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Skill 6
Compare alternative and traditional financing sources and recommend optimal funding strategies for case-study SMEs.
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Responsibility & Autonomy 6
Design a basic financing plan for an SME by integrating multiple funding sources – managing ethical, strategic and operational implications.
CROSS-MODULE COORDINATION
- Module I – finance fundamentals.
- Module II LT 2 – FinTech Tree (alternative financing as a vertical).
- Module III is the primary reference for the EU regulatory framework: PSD2/PSD3 (LT 3), GDPR (LT 4), AMLR/AMLA (LT 5), MiCA (LT 6), DORA + AI Act (LT 7).
- Module IV LT 9 – AI Act framework with the seven high-risk obligations and Digital Omnibus context.
- Module V – Blockchain & Crypto, for tokenised alternative assets.
- Module VI – Cybersecurity playbook for SMEs (DORA implementation).
- Module VII LT 2 – Neobanks vs FinTech lenders; LT 5 – B2B Payments + ERP/Accounting integration.
- Module XII – Embedded Finance and BaaS (the 4-actor model, embedded lending architectures, FiDA).
- Module XIII – Founder perspective on equity financing and term sheets. Module IX is self-contained but coordinates with all of these.
🎯 What you will be able to do after this module
When you finish Module IX, you should be able to:
- identify the main alternative financing options for SMEs – crowdfunding, P2P, invoice finance, factoring, RBF, angels, VC, grants and fintech lending
- match a financing method to a specific SME’s stage, need and risk profile
- read the key EU rules shaping SME finance (ECSPR, ViDA, the AI Act, the Late Payment Regulation, the Listing Act)
- weigh cost of capital against dilution and flexibility
- combine instruments into a coherent ‘capital stack’
📖 A story that runs through this module
To keep the ideas concrete, one business runs through every topic:
Elena – a Tallinn-based B2B SaaS scale-up (€2M ARR, growing 80% a year) that needs €5M within six months to enter the US market, with as little dilution as possible.
You will also meet Stefan (an engineering SME) and EcoBuild (a CleanTech SME) in the storytelling that follows; Elena is the thread we return to in each topic, so alternative financing reads as one evolving journey rather than a set of separate decisions.
🧭 How to use this module
Lessons are tagged by depth so you can pace yourself:
- Start with [Intermediate] lessons for the essentials (the instruments and when to use them).
- [Advanced] lessons go deeper (the AI Act, blended finance, the capital stack) – return to them once the basics are solid.
- Look out for the recurring boxes:
🧭 In this topic – where you are and what you will gain
💡 Key idea in plain terms – jargon made simple
⭐ Key takeaway – the one thing to remember
🛠️ Apply it – a reflection prompt, a first step for an SME, a risk-to-decision question and a checklist
🔑 Answer Key – assessment answers, moved to the end of each topic so you can test yourself first
Contents
- 9 Learning Topics
- 21 lessons
Learning Topic 1: Introduction & The European Alternative Financing Ecosystem
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🧭 In this topic
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LESSON 1.1 – Why “Alternative” Financing? Definitions, Scope and the Six Forces [Intermediate]
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LESSON 1.2 – Capital Structure Intelligence: The Strategic Lens [Intermediate]
Learning Topic 2: Crowdfunding under ECSPR
Learning Topic 3: Receivables Finance – Invoice Discounting and Factoring with ViDA
Learning Topic 4: Revenue-Based Financing for the Subscription Economy
Learning Topic 5: Equity Capital for Growth – Angels, VC and the Listing Act
Learning Topic 6: Trade Credit and the Late Payment Regulation
Learning Topic 7: Public Funding for Innovation – EU Grants and Blended Finance
Learning Topic 8: Fintech Lending Platforms and AI-Driven Credit
Learning Topic 9: CAPSTONE – Building Your Capital Stack: Integrated Financing Strategies
References and Final Assessment
Download MODULE IX
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