In today’s financial landscape, our centralised banking system is prone to data breaches and failure. What is worse is that it can easily be manipulated to favour the lobbying status quo. On the other hand, the blockchain is a public ledger, open to everybody, transparent and secure enough to save all financial assets like money, equities or bonds.
There is no doubt that there will be further developments in the way invoice finance will be facilitated on the blockchain. This also makes it less restrictive for SMEs to access working capital, as the blockchain allows platforms such as Populous World to act faster and more secure.
Invoice Finance will be more available to underserved SMEs that need immediate working capital from products or services rendered. Companies such as Populous World onboards SMEs on their blockchain-based platform that allows buyers to instantly purchase invoices.
With the Populous World invoice discounting platform taking advantage of technology advancements offered by the blockchain, invoices are tamper-proof once created on the blockchain after a rigorous KYC process. This prevents fraud, invoice manipulation and provides a sense of assurance for invoice buyers who are able to participate in the invoice financing process regardless of geographical location, thanks to blockchain technology.
Invoice Finance – Why use it?
A business with long payment cycles with customers or a heap of outstanding invoices turn to invoice finance for a variety of reasons:
The business is growing too fast and needs to collect cash quicker than the customers take to pay them to fund new orders.
A product based business may not be able to wait for invoices to be paid as it may leave them short in stock for a long period of time.
No more capacity at bank; Perhaps the business has run out of banking facilities and does not want to take out an overdraft or credit card.
Short term relief; The business chooses invoice finance because they don’t want to take out a long term loan.
Start Ups – You may be a young business that can’t get approved for credit or an overdraft.
>> Is your business in need of fast, short-term financing? Do you need to access cash faster than your customers pay you?