Invox Finance – Blockchain Based Invoice Financing System
Every business needs enough cash flow for daily business activities. In the absence of enough of it, they go for invoice financing. However, the problem with the traditional invoice financing is that – there is no much transparency in the process. Invox Finance has a solution to it.
For people those are who aren’t aware of Invoice financing, Invoice financing is an invoice lending process where the businesses (seller) which need cash flow sell their due invoices to the investors (financiers) for a discounted price. On the expiry of the due date, these financiers collect the funds from the customer (buyer.)
What is Invox Finance?
Invox Finance is a decentralized invoice-lending system built on the blockchain technology. Being decentralized and having information stored in the public ledger, the system brings transparency to the process. Not only that, but the system also brings a lot of new investment options, and reduces the discount rates. Let’s look at the amusing features of the platform to know more.
Invox Finance is built on the blockchain, thereby making the entire system decentralized. Being decentralized not only makes information and the process transparent, but it also brings all the parties involved in the transaction in direct connection. It allows businesses, customers, financiers, and other members to connect, interact, share and distribute information directly. Now that all the parties are connected, a lot of time is saved.
In the traditional invoice financing business, the only financiers are Banks, Financing companies and big institutions dedicated to invoice financing. However, with Invox Finance any individual can join the system and buy the invoices from the business. So now they can get the invoices discounted at a lower rate.
In the traditional system, once the invoice is sold, any update made to the invoice is only known by the financier/investor. With Dynamic invoicing, everyone would get access to the status of the invoice. It is built using Ethereum smart contract and all the parties involved could see the changes made to the invoice in real-time.
Diversification of funds
With this feature of Invox Finance, an investor is allowed to buy a fragment of the invoice. It means, he doesn’t even have to buy the entire invoice, he would instead buy a part of it. Yes, this way, instead of spending all his money on one invoice, the investor can diversify his investments.
The traditional invoice financing is risky. But the Invox Finance platform allows the investors to diversify their funds by enabling them to buy fragments of invoices. It also leads to reduced risks; For example, If a single customer turns out to be a fraud, the investor won’t be losing all his money as he would have diversified them into different invoices.
The Invox Token & ICO
The Invox Finance Pvt Ltd. is also coming up with a token called Invox token. The buyers and sellers involved will be rewarded with it for verification of transactions. For people/institutions which wants to be a seller on this platform would also need certain amount Invox tokens to pay for the yearly membership of the platform.
The company is also launching an ICO to sell platform membership by selling the Invox tokens. If you’re interested in investing, then you can buy them at a discounted price by participating in the ICO. For more details, check: https://invoxfinance.io
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