Invox Finance as a solution to solve the problem of Small Business Cash Flow with Interest Financing that is Easily Accessible and Low globally nowadays

tristan88crypto (30)in #bitcoin • 6 years ago

Introduction to Invox Finance

The Invox Finance platform as an invoice loan platform enters the invoice financing industry worth US $ 2.8 trillion. The team at ABR Finance Pty Ltd is behind Invox Finance. ABR Finance is a successful invoice finance company and has helped fund businesses across Australia with A $ 30 million in invoicing. ABR will also become the first customer of Invox Finance, enabling some sellers and buyers to test the Invox Finance Platform with ABR Finance as a leading investor.

The ideas and concepts in this paper attract many of its founders, the experience of running a successful invoice financing company in Australia - ABR Finance Pty Ltd www.abrfinance.com.au . ABR Finance has been in operation since 2012 and has helped fund businesses across Australia with $ 30 million AUD in invoices, across industries including IT, wholesale, construction, transportation, engineering, equipment and labor, publishing and professional services.

We understand that one of the main challenges facing medium-sized companies today is the ability to maintain cash flow health. Even successful businesses that deliver quality goods or services to a loyal customer base can experience problems if they experience unavoidable and periodic cash flow reductions.

People in Australia, the Securities and Investment Commission reported to the bankruptcy company found that 40% of businesses have inadequate cash flow or high cash usage.

The traditional invoice financing model does not create a direct connection between the person who funds the invoice and the person pays the invoice. Our proposal is to create a decentralized platform that will connect all parties, distribute information and execute the terms and conditions of each transaction with greater visibility and confidence of all involved.

Who is Invox Finance ?

Invox Finance Pty Ltd was founded by a member of ABR Finance Team Pty Ltd, a successful invoice financing company based in Australia. As our team is undergoing an expansion phase, visit our website www.invoxfinance.io for the most up to date information on our team.

What is Invoicing Financing ?

Traditional invoice funding is based on the purchase of invoice financiers from the seller. In return, the financiers agree to apply money to the seller against each invoice.

Invoicing Financing ?

The main problem with traditional invoice financing is that the investor buys an invoice from the seller and advances the funds against it has no direct relationship with the buyer. The financiers simply trust the information provided by the seller. As a result, the relationship between the seller and the buyer is not completely transparent to the investor, and therefore exposes the financier to a considerable risk of unpaid invoices as agreed or disputed.

Six Drawbacks of Traditional Invoice Financing

No direct contact

The financier does not have a relationship with the buyer, which exposes the financier to considerable risk.

Invalid invoices

The seller may issue an invoice for an uncompleted service or a product that doesn’t meet requirements.

High legal costs

The preparation and execution of legal documents is costly and typically involves third-party providers.

Defrauding

The seller and the buyer may conspire to defraud the financier. Or the seller may breach their agreement and request a direct payment.

Disputes

The buyer may dispute the payment liability and leave the other parties out of pocket, putting their reputations on the line.

Insolvency

The buyer may become insolvent and unable to pay for the invoices, forcing the other parties to suffer the loss of funds.

How does the Invox Finance Platform solve the problem ?

The Invox Finance platform is a decentralized peer-to-peer invoicing loan platform that will enable sellers, buyers, investors and other service providers to connect, interact, share directly and distribute information. The platform aims to create environmental trust by facilitating transparency between parties and satisfactory performance.

This platform will disrupt and revolutionize traditional invoicing of financing by implementing a system where trust and transparency between all parties is developed through the reward system it contains. In addition, the execution of transactions and information flows will not depend on a single centralized service provider, but instead is governed by a fully transparent set of transparently executed ledgers distributed.

Who will use our system ?

Investors are looking for higher returns and diversification of their investment portfolios. Sellers that have invoices they want to sell to accelerate their cash flow. Buyers who will receive an invoice payment period extend and become valued to verify the invoice.

How Traditional Invoice Financing Works ?

First Transaction

Invoice financing is based on the financier purchasing invoices from the seller. Once the financier approves a seller for an invoice finance facility, the financier will agree to advance monies to the seller against each invoice. When the seller issues the invoices to a buyer, the seller will request funding from the financier against these invoices (usually up to 80% of the face value of each issued invoice). The financier will then advance the agreed amount to the seller.

The financier will be relying on the invoices to be paid directly to them by the buyer in due course, in order to have their invoice finance loan repaid.

Second Transaction

The financier will then require that the payments for all issued invoices are made into a bank account that is controlled by the financier.

The seller will need to notify its customers (buyers) of the new bank account details and all future invoice payments will need to be made into that account.

Third Transaction

When the financier receives a full payment for a funded invoice from the buyer, it will return the balance of the invoice value to the seller less its fee. Usually this is 20% less any fees or interest.

What is Invox Token?

Invox Token will be created on Ethereum network using ERC-20 Standard and will have the following utilities:

Provide access to the platform through Trusted Members
The rewards program performed for the platform is a system that rewards buyers and sellers with Invox Tokens for verification invoices, invoicing and settlement payments.

Invox Tokens

Tokens with a real-world use case created on the Ethereum network.

Use Case

Access : Join the platform as a seller by holding Invox Tokens.
Rewards : Get rewarded in Invox Tokens whenever you verify or pay invoices.
Fees : Invox Tokens are used by sellers and investors to pay their respective fees for access.

Token Type : Utility token
Token Ticker : INVOX
Emission Rate : No new coins will ever be created after the ICO
Token Network : Ethereum (ERC20)
Distribution : Tokens will be distributed 14 days after the token sale ends
Token Value : 1 ETH = 10,000 INVOX + any bonuses

Token Allocation

Sale Structure

Fund Allocation

Platform Overview

The Invox Finance Platform will comprise of the following :

Dynamic Invoice Smart Contracts

A set of Dynamic Invoice Smart Contracts will be deployed to the Ethereum mainnet. They will facilitate the creation of completely dynamic invoices and registration of these invoices on a distributed ledger.

Dynamic invoices will also store additional information such as invoice verification status, advances made against the invoices and payments received. They will also ensure that the information stored on the ledger is transparent, reliable and secure.

Blockchains enable data structures 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.

Loans Smart Contracts

These smart contracts will also be deployed on the Ethereum mainnet. These contracts will enable the flow of funds between investors, sellers and buyers. They will also direct funds to a specific party (when certain smart contract conditions are met) and enable fragmentation of loans to reduce risk to the investor.

The loan terms and conditions will be coded into the smart contracts, providing all participants certainty that their terms and conditions will be enforced.

They will have the following functionality :

Scanning of existing paperbased Invoices and adding a hash (SHA3-512) signature on an electronic copy - this will allow existing paper-based invoices to be registered on the ledger with additional digital information attached to them.
At any time, the original documents can be reproduced, providing the document existed in its current state before the time it was entered into the blockchain.
All new invoices will be created as a dynamic invoice record. This will eliminate the need for scanning paper-based records.

There are a number of significant differences between a paper based invoice and a dynamic invoice record on a distributed ledger :

The information on the paper-based invoices is static and cannot be updated. The information on the dynamic invoice record can be updated in real time.

For example, when a seller issues an invoice to the buyer and then sells that invoice to a financier to obtain invoice funding, the financier will need to write to the buyer to inform the buyer that the invoice must be paid directly into financier’s bank account. With a dynamic invoice, the financier will be able to update the account details on the invoice and show the financier’s name and the amount advanced against this invoice.
The information on a paper-based invoice can be forged or altered by any single party. It will not be possible to manipulate a dynamic invoice record on a distributed ledger by any one party as the invoice information will be stored on a public ledger.
Invoice verification of the paperbased invoices requires the financier to manually request the seller to verify that the invoice is due and payable. The process of dynamic invoice verification will be automated with verification acknowledgment recorded as part of the invoice information.
When the goods are delivered, the seller is usually required to sign delivery documents to acknowledge delivery and acceptance of the goods. This process will also be automated as there will be no need for any additional documents. The acknowledgement of the delivery by the buyer will be recorded as part of the dynamic invoice and stored on the public ledger.

Dynamic Invoice Smart Contracts

Invoice Details

Dynamic invoices will be created with the following fields :

Blockchain fields