Valued at 2.85 Trillion USD, the Invoice Financing is a huge industry. It’s very popular among the nations like Europe, America, Australia and some parts of Asia. The reason why markets in China, Japan and many other countries have contractions is that there is no transparency in the system. That’s where Invox Finance comes in picture.
What is Invoice Financing?
Invoice financing is a process in which Businesses sell their due invoices to the financiers/investors at a discounted price. After the credit period expires, it’s the investors work to get the money from the customers. It majorly involves three parties, they are:
1. Business (We call them Sellers)
2. Customers (Buyers)
3. Financiers/Investors (The companies which buy the invoices from Businesses and collects money from the buyers)
Why would the Businesses sell the invoices for a lower price? It’s because every Business needs regular cash flow for daily expenses to keep the business running.
What is Invox Finance?
The Invox Finance system is a decentralised peer-to-peer invoice financing platform built using blockchain technology. It solves the biggest problem of the traditional invoice financing process by bringing in transparency. Using the Invox Finance platform, all the parties involved such as the buyer, investor, seller and others can directly interact, communicate, share and distribute information. Let’s look into the some of the outstanding features of the platform.
The decentralised nature of the platform enables all the parties to interact, communicate, share, and distribute information directly. Since it’s not centralised, one can’t manipulate or change the data, unless others agree.
The Invoices will be available in the public ledger, and changes made to it will be reflected publicly. So a party which is involved in a transaction can see the real-time modifications made to it. For instance, the Business owner can see if his customer has repaid the investor or not. He can also know if the invoice is due.
Diversification of Funds and Reduced Risks
The Invox Finance platform doesn’t just connect all the parties directly. But it also opens gates for individual investors. This way, an individual can choose the business and buy invoices from them. Additionally, he/she can also obtain fragments of the invoice. For instance, An investor can invest $100 and buy a fragment/share of an invoice worth $120 from an entire invoice which is valued at $10,00,000. This way he gets to diversify his investments.
As the investor can buy a fragment of an invoice and not the entire invoice, he can choose to invest his money in multiple invoices. So in future, if the customer (buyer) is a fraud or declares himself insolvent, the investor won’t be losing much of his investment.
Invox Token and the ICO
Besides the platform, the company is also going to launch its token called Invox token. It will be used to reward the buyers and sellers on verifying the transactions. The sellers would also use the token for buying the yearly membership using Trust member program to gain access to the Invox platform. That's the only way they could get access to it.
The company is also going to launch an ICO where it will be selling the tokens at a discounted rate. It plans to sell the platform membership with the sale of the tokens. For more details visit: https://invoxfinance.io