Transparency Comes to Invoice Financing, Thanks to Invox Finance

According to the market research reports, the Invoice Financing industry is globally valued at 2.78 Trillion USD. The industry has grown huge in countries like United Kingdom, Australia, and the United States. But in countries like China and Japan, it’s still not performing well. However, that’s all because there’s no transparency in the system. Invox Finance solves the problem by bringing clarity to the system.

The Invoice Financing is a condition where the Investors buy the due invoices from Businesses at a discounted price. Say, Invoice which is worth $100,000 is sold for $80,000. After the credit period expires, the Investors collect their money from the customers (buyers.) This way, businesses which need cash-flow for daily activities get it, customers get credit period, and Investors gets a guarantee return on investment.

Invox Finance is an invoice lending system built using the blockchain technology. It’s decentralized and thus brings all the parties in direct contact. All the data is also available on the blockchain platform in the form of open ledgers. Because the information is publicly available, it creates a trustworthy environment. Let’s look into the features to know more.

Decentralization: Being built on the blockchain platform allows all the party members to interact, connect, distribute and share information directly. The data is in the public ledger thereby even if a single entity deletes the data. It won’t affect the records unless all of them approve the deletion.

Dynamic Invoices: In the traditional invoice financing system, the invoice data and status are not available to anyone after being sent to the investor. But with Dynamic Invoices feature of Invox Finance, which uses Ethereum smart contracts, the invoice is accessible by anyone (members or interested party) at any time. All the parties could see all the changes such as payments made to invoice.

Individual Investors: You can find big financial institutions as financiers in the traditional invoice financing system. However, with Invox Finance, even an individual investor can buy invoices from the businesses.

Reduced Rates: The rate of the amount paid to the financiers in the traditional invoice financing is high. For instance, an invoice which costs $100,000 is sold at $70,000-$80,000. However, in this case, the interest rates shall go less, and the same invoice could be sold for $90,000 or $95,000. However, the interest highly varies from investor to investor.

Diversification of Funds: Individual investors don’t need to buy the entire invoice. They can obtain a fragment of the invoice. For instance, there’s an invoice which costs $100,000. The investor can purchase a bit of it say 10% of the invoice, i.e., $10,000 at $8000. This way the investor can diversify his funds into different businesses.

Reduced Risks: The investors can expand their funds into various companies, thereby if a single business declares it as insolvent, the investor won’t lose huge funds. However, this feature is only helpful if the investor diversifies his funds.
Invox Token and the ICO
The Invox Finance system comes with Invox token. It shall be given as rewards to the buyers and sellers who help in verification of the transaction. However, it’s mandatory for the seller to have Invox tokens to pay for the yearly membership for the platform.

The company is also launching an ICO; It thinks that it’s a great way to sell platform membership by selling the tokens. Interested in investing in it? You can participate in the ICO and get the coins at a discount rate. For more details check: https://invoxfinance.io

Source of the article: Transparency Comes to Invoice Financing