Incorporating Blockchain in Invoice Discounting or Invoice Financing, will add features such as immutability and audibility in the system making it more reliable and trust free. Here are a few advantages of Blockchain in Invoice discounting.
- The reliable credit history of IF seekers: Credit history of IF seekers can be stored on the blockchain, which will build trust within investors.
- Improved GDP: As the tedious process is cut short, SMEs will be able to avail finance with more convenience. This will improve the overall liquidity in the system and growth will of individual companies will boost thereby aiding the overall economy of the nation.
- Reduced Fraud: With the advent of the blockchain, there will be no chance of fraud due to its features such as immutability and audibility.
- Time-saving: Previously, time involved in invoice approval after checking for its legitimacy was really long but now, the whole process is getting automated. Blockchain will further add efficiency in the system.
- Better investment: With better liquidity, interest rates will be at check aiding finance seekers with loans at best rates.