The concept of invoice financing is quite popular in the US, UK and Europe, as well as in Australia and certain parts of Asia. It is a booming industry which is valued at 2.85 Trillion USD! However, one of the biggest challenges that invoice financing faces is the fact that it lacks transparency at times. Invox Finance helps get rid of this problem which has plagued the industry with the help of blockchain based solutions!
Before we delve deeper into understanding how the blockchain technology can help solve the problems faced by the industry, let us quickly understand what invoice financing actually is. Invoice Financing is the process of businesses selling off their due invoices to financers or investors at a discounted price.
This practice involves three parties – businesses, customers and financers. The businesses sell their invoices to the financers who collect the money from the customers after the credit period expires.Invoice Financing is usually done when businesses are in an urgent need of cash. With multiple parties involved, the process gets quite hectic at times. However, Invox aims at bringing transparency to the process with the help of the blockchain technology.
How Does Invox Infuse Transparency into the Invoice Financing system?
Invox makes use of a decentralized, peer-to-peer blockchain-based platform for managing invoice financing. Let us take a closer look at some of the highlights of the Invox Platform:
– Decentralized and Public Ledger
Considering the fact that there is no central governing authority and that all parties involved have the same amount of access and control, the decentralized and public nature of Invox Finance ledgers makes it highly suitable for the purpose of invoice financing. It allows all the parties involved to see the status of payments, as well as update them easily – these updates will be real-time updates, thanks to the dynamic nature of the Invox ledger. Moreover, since there is no centralization, it ensures that no party can manipulate the data without the approval of all parties involved.
– Individual Investors and Reduced Risks
One of the highlights of the Invox Finance platform is that it allows diversification of funds. Investors can buy off a chunk of the total invoice. Basically, if there is a business invoice of $10,000 – individual investors can buy off portions of it, such as a chunk of $2,000 can be bought off by an investor. The customer can also choose to invest in fragments of multiple invoices – for example, it is possible to buy $2,000 from one invoice and $3,000 from another invoice. This diversification of funds helps the investors cover any risks associated with putting all their money into the invoices of one business.
Invox Token Sale and ICO
The primary means of payment on the Invox Finance platform is that of the Invox Token. This token can be purchased by investing into the Invox ICO. It is with the help of the Invox Token that interested customers can buy a yearly subscription of Invox Finance, which allows them to buy invoices from businesses. For more details about the token sale and the ICO, visit: https://invoxfinance.io