Payblok - An Haven For Small and Mid-sized Business

toluene (47)in #crypto • 6 years ago (edited)

According to Wikipedia, small and mid-sized businesses (also known as small and medium enterprises) are the businesses whose number of employees are below a certain number (e.g. 0-100) or have a certain maximum net profit in a financial year.

The importance of Small and mid-sized businesses (SMB) in the economy of any country cannot be overemphasized, as they play a very crucial role in the economy development of both developing and developed countries. Aside from the fact that they account for a larger percentage the annual GDP of most countries, they also increase the employment rate, increase production level, and drive innovations among other benefits. SMB benefits to the economy are so enormous that governments tend to prioritize their growth.

Despite the importance and relevance of these businesses to the economy, there are still some challenges they currently face which to a large extent have adversely affected most SMB growth. Some of which are mentioned below:

Prolonged payment of credit terms
Limited or no access to loans and financing facilities
Extensive order processing period

Solution

InstaSupply

InstaSupply is a current company created in year 2014 with the sole aim of supporting small and mid-sized businesses to solve the problems they encounter with cash flow. InstaSupply function is to help companies relieve the stress and cost involved in the process of ordering, delivering, accounting and payment by digitizing and automating the entire process that leads to payment. The company is already successful, with a usage of over 2000 companies monthly and transaction worth over $60 million dollars.

In the quest to better serve SMBs (small and mid-sized businesses) and also for expansion, InstaSupply has identified some of the problems businesses encounter with its present platform and business world and how to provide them with innovative solutions through the use of the Blockchain technology. The innovative solution to this is PayBlok

PayBlok

PayBlok is a decentralized platform built as an innovation on the InstaSupply platform with the aim of solving the challenges of the SMBs and also to reward businesses to business transactions that occur through the platform. PayBlok was created to help businesses improve their cash flow issues, and also eliminate the element of human error in the business transaction process.

InstaSupply offer the following solution to the small and mid-sized businesses (SMB) through the PayBlok utility tokens

An integrated payment solution: PayBlok will implement a payment system that will benefit both the buyers and suppliers on it platform. The system runs in such a way that buyers and suppliers are able to control their payment and collection system conveniently, which makes the payment system faster and accurate. This platform will automatically accept purchase order and delivery that matches with invoices on the system and there will be manual acceptance of purchase order that do not match the invoice on the system, after which funds will be released to suppliers who opted-in to supply chain financing.

Supply chain financing: supply chain finance is a form of finance that benefits both the buyers and the suppliers by optimizing working capital and providing business with liquidity. It makes it possible for the suppliers to get fast access to their receivables by discounting them to the financial Institutions to enable their working capital and the buyers will have more time to pay back the payables they owe. With PayBlok providing the suitable resources ( invoice approval, efficient workflow, integrated payment solution), access to supply chain finance becomes possible for SMBs, who needs it the most for business development.

Asset-Based Lending: PayBlok provides InstaSupply the ability to grant loans to SMBs by using PayBlok tokens as guarantee. The businesses applying for such loan most have a minimum of 60% of the required loan as collateral, with the interest rate being as low as 1%. This is a very good offer for SMBs as they previously find it difficult to secure bank loans for financing, so being offered a access to loan at an interest rate as low as 1% is too good an offer.

Strength of PayBlok

Strengths are the unique features of a project that makes it unique from every other project.

The strength of PayBlok is in its development of its existing platform (InstaSupply). Unlike most projects that are still based on ideas and will require time to get established, PayBlok is at advantage of having an existing platform with over 2000 users and yearly transactions worth over $60million. PayBlok is not just an idea but an innovation on InstaSupply platform that is aimed at providing the features that are previously inaccessible in the InstaSupply platform. Therefore PayBlok will have little issues with adoption.

Another advantage is the fact that the no of SMBs available globally are numerous and there is currently no existing project that looks to revolutionize such businesses, which makes PayBlok the pacesetter in this line. And by the time competition will come, PayBlok will have developed a brand that is unstoppable.

Weakness

Weaknesses are the features that make a project vulnerable and likely to struggle.

Cryptocurrency is still in its infancy stage and still striving towards mass adoption, the utilization of PayBlok by every business and consumers may be quite challenging because not everybody is crypto inclined, PayBlok will only be easily adopted by businesses whose customers are willing to use the utility tokens.

Although PayBlok have promotion plans that will incentivize users of the platform, which may help neutralize the threat of adoption.