Invoice Financing is a process often used by businesses when they are in an urgent requirement of cash! Businesses tend to require urgent cash from time to time and one of the best ways of getting instant, urgent cash is by selling off their invoices to financers and investors at a discounted price. Basically, these invoices are accrued income for a business, which will now be claimed by the financer.
In such a deal, businesses get instant cash while those who lend this money to the business get a benefit as they always make a profit on this deal. Moreover, this also involves businesses recovering some amount of a bad debt in case the creditor turns rogue. Invoice Financing is a process which involves a number of people and tends to get complex. One of the biggest problems of invoice financing is the lack of transparency, which Invox Finance intends to solve with the help of a blockchain-based solution!
The blockchain technology ensures that all data recorded in the deals is permanent and cannot be altered. This tamper-proof technology makes sure that there are no frauds or miscommunications taking place in the invoice financing deals. Let us take a closer look at how Invox Finance helps solve these problems:
Invox Finance: Making Invoice Financing Easier with Blockchain Solutions!
When it comes to Invox Finance, there are some key features that need to be kept in mind:
- Distributed and Public Ledger
One of the biggest problems of traditional invoice financing is that it is a centralized system where there is a large scope of manipulations and fraud. However, in case of a blockchain based system, the chances of a fraud drop dramatically low. This is because this is a decentralized system on a public ledger.
Basically, all the parties involved in the process, i.e., the buyer, the seller and the creditor can see any changes or updates made to the invoices. Moreover, to make these changes or updates, permission from all the parties is needed. Once all the parties approve and a change or an update is made, it is permanent and cannot be changed later on. This makes records permanent and transparent.
- Diversification of Investments
The key concept of the Invox platform is to allow individual investors to buy off invoices from a business. Interestingly, if a business has an invoice of $10,000, investors can choose to either buy off the entire invoice, or a portion of it. Investors also have the option of buying multiple invoices from multiple businesses or buying portions of multiple invoices from multiple businesses. This helps them diversify their investments and reduce risks of a payment default.
The Invox Token: Initial Coin Offering Token Sale
The Invox Token is the primary means of a transaction on the Invox Finance blockchain. It is with the help of this cryptocurrency token that users can buy a yearly subscription on the platform, following which they can buy and sell invoices. The Invox token can be obtained via the Invox Finance Initial Coin Offering where the tokens are available at a discounted rate, details about this ICO can be availed on our website.