The blockchain technology has become quite popular these days. Almost every firm in the world wants to employ a blockchain system – some of them for no apparent rhyme or reason. However, there are some industries and sectors where blockchain based solutions can actually be quite beneficial. Small and Medium Enterprises, popularly known as SMEs have an immense untapped potential when it comes to application of blockchain technologies. A proper blockchain system can help solve a number of issues that SMEs face, including invoice related issues.
Invoice Financing is one of the most popular means of businesses to get some quick cash, especially in the Western regions such as the US and European Union. It is also getting popular in Japan, Australia and some parts of Asia. For those who are not aware about what this process is, invoice financing is basically the process of selling off invoices that debtors owe to the company in exchange for some quick cash.
For instance, a debtor owes $5,000 to a business. However, the business is in an urgent need of money for some repair work and they need instant cash. They can sell off their invoice to a third party finance firm for a discount (for example, $4750), and the finance company would then collect the $5000 from the debtors – making a profit of $250.
However, when it comes to invoice financing, there are a number of complications. While the example above deals with one business, one debtor and one financer – at times businesses have multiple debtors and multiple financers and managing the paperwork becomes quite complex. This leads to invoice frauds and tampering of data – which causes one (or more) parties involved a loss.
Such a problem can be solved with the help of blockchain based solutions. While this is a very niche markets, there are some companies which are catering specially to their needs. Invox Finance is one such platform which brings in blockchain based systems to invoice financing.
Blockchain systems help in easy management of invoices as they ensure that all the data stored in the system is tamper proof. No changes can be made to the data without the permission of all the partners involved in the deal – making any fraud virtually impossible! Moreover, blockchain systems ensure that invoices remain in permanent record even after the deals are done and payments are settled so that there are no disputes in the future. These are hack-proof systems and ensures a better safety and an easier, simpler system of managing invoices.
Invox Finance, with their platform – is bringing in the blockchain revolution into the world of invoice financing. Interested investors can invest into the Invox ICO and token sale at https://invoxfinance.io. Once they have access to the Invox Tokens, users can make use of the Invox Platform to buy invoices or fragments of invoices from multiple businesses, helping out the businesses as well as making a profit in the process.