Introduction
Blockchain and cryptocurrency have given the world a new decentralised and transparent means of sharing assets. As a result, there has been a number of innovations in the blockchain and as of now dApps (decentralised apps) are entering almost all the sectors of our society, especially the financial industry. The ability to share assets over a decentralised platform and with complete privacy has revolutionised many aspects of the financial industry. Invoice financing is a way by which businesses borrow money from lenders against the outstanding amounts from their actual customers.
Problems with invoice financing
Invoice financing is a great means for businesses to generate instant money and invest it quickly, instead of waiting for their customers to pay outstanding amounts. However, the system lacks a very important feature, transparency. When a financier (the lender) buys an invoice from the seller, the financier does not have a direct relationship or prior acquaintance with the actual customer, all that the financiers can do is blindly trust the seller's information and wait for the customer to pay. Another major drawback of the system is that the relationship between customer and seller is not known to the financier, who might unknowingly purchase an invoice for a work that was poorly performed. All this is an unwanted risk that financiers have to take when involving themselves in the system.
The Invox Finance Platform
Invox Finance plans to leverage the transparency offered by the blockchain technology to create a decentralised peer-to-peer invoice lending platform. The platform aims to create a single ecosystem that will allow sellers, lenders, customers and other service providers to directly interact and share information over the platform the platform will facilitate a complete transparency between parties and reward performance.
Invox Finance thus aims to revolutionise the traditional invoice financing by creating a decentralized platform that can build trust between interacting parties by a built-in reward system. In addition to this, all the transactions over the platform will not be handled by a centralized party but will be governed by smart contracts and a set of rules that will execute on a fully decentralised platform
Benefits:
As mentioned earlier, the financiers/lenders are the ones who take a huge unwanted risk when buying invoices. They could be led into a complete fraud or other issues with the customers. Invox finance is here to change all this. The platform will build trust in the community by having the buyers to first verify the credibility of the invoices.
The financiers can thus, rest assured of the credibility of the invoices they buy and the service provided by the seller.
The platform will also be of great benefit to the sellers and small businessmen who do not have big financial contacts. They can list their work and invoices over a global platform that has financiers from all across the globe. And the best part is, based on your profile and Invox Platform rating your credibility can be trusted without having to make an established business network.
Buyers can receive extended invoice payment periods will be rewarded Invoix tokens for verifying invoices.
Key Features of Invox Finance
Lower rates for sellers: Sellers will be able to obtain financing at lower interest rates than normally received from a traditional financier.
New investment opportunity for investors: As of now most of the investments made in invoice financing are made by large organisations of banks. The invox finance platform will allow all kinds of investors to make investments if invoice financing.
Dynamic invoice: Blockchains enable blocks representing invoices to be deployed and to be tamper proof. This enables all participants of the ledger to view the state of the invoice with respect to time. All the information such as invoice verification status, advances made against the invoices and payments received will be securely stored on the blockchain. They will also ensure that the information stored on the ledger is transparent, reliable and secure
Smart Contract Loan: The smart contracts will be responsible to direct funds from one party to another when their conditions are met. The loan terms and conditions will be coded into the smart contracts, providing all participants certainty that their terms and conditions will be enforced.
Invox token and ICO details:
Token: INVOX
ICO Starting date: 15th April, 2018
ICO ending date: 15th may, 2018
Accepted currencies: ETH
Minimum contribution: 0.1 ETH
Conclusion
The Invox Finance have correctly seen the need of the hour and are aiming to make the best out of it. The invoice financing is in dire need of a transparent platform that can build credibility in the system so that more investors and even small businesses can benefit from it. The platform correctly addresses the issues that the traditional industry fails to resolve and being the first decentralized and transparent platform in the market it is bound to have a massive impact on the traditional invoice financing.
Links of interest:
Website: https://www.invoxfinance.io/
Report: https://www.invoxfinance.io/docs/Invox-Whitepaper.pdf
Facebook: https://www.facebook.com/Invox-Finance-162381191061327/
Twitter: https://twitter.com/InvoxFinance
Instagram: https://www.instagram.com/invoxfinance/
Telegram: https://t.me/InvoxFinanceCommunity
Profile: https://bitcointalk.org/index.php?action=profile;u=1816796
ETH: 0xA6A501Cd72C86B5fa3a41A675367996a7181B0eB