The world of business and technology are correlated. Changes in the world of technology reflect on the functioning of businesses and changes in businesses and business models around the world reflect on the growth of technology. The latest such change which has affected both these worlds is that of the arrival of blockchain systems. Blockchain technology is a disruptive and unique technology which is all set to change the way we know fin-tech to be.
Invox Finance is a blockchain based platform which brings this next-gen Blockchain technology into invoice financing. With the help of blockchain systems, transparency is infused into the setup. This is because no parties can alter the contracts between them as any changes to the invoice would need an approval of all the parties involved (i.e. the business, the financer and the debtor).
One of the biggest benefits that blockchain systems have to offer is the fact that these systems are secure, transparent and tamper-proof. Blockchain systems are designed in such a way that they cannot be tampered with and the data once stored remains there forever. This is of particular use in business documents which require utmost levels of preservation and security from any alterations.
Moreover, when it comes to businesses which deal with multiple parties, this becomes even more critical. Businesses need to make sure all their invoices are secure and in place so that they can claim their money from their debtors on time. Invoice Financing too, is an industry which is bound to benefit from the blockchain technology.
Invoice Financing, for those who may not be aware, is a business process involving selling off of business invoices to financers when businesses are in need of urgent cash. This is particularly useful for Small and Medium Enterprises (SMEs). For instance, if a business owes $10,000 from its debtors who are to pay them one month later, but the business is in urgent need of money. The business can sell off this invoice to a financer in exchange of $9500 – which is provided to the business instantly.
Later, when the credit period expires, the financer can collect the entire amount of $10,000 from the debtors – thereby making a profit of $500. This is the process of invoice financing which is quite popular in the European Union and the US – and is getting common in Japan, Australia and a few Asian nations too. However, the process has a bad reputation in many places in the world, particularly because it is a complex system where transparency is a major issue – leading to frauds.
This keeps everyone involved in loop of what’s happening and what the status of an invoice is – thereby effectively reducing frauds. The Invox Finance platform is currently running a token sale where the Invox Token can be purchased. This token is the means of all transactions on the Invox Platform where individual investors can buy invoices (entirely or in fragments) from businesses. This helps investors make a guaranteed profit while businesses get easy access to cash flow. For more details on Invox, log on to: https://invoxfinance.io