Challenges in current System

  • Double Financing: As mentioned earlier; on an average of approximately 0.1% to 0.05% of invoices paid are typically duplicate payments. Invoices are easy to duplicate as we have seen that being leveraged in the case of Businessman Vijay Mallya.
  • Banks not readily giving loans: Because of a massive amount of work involved in checking the legitimacy of each invoice, demoting the scope for duplication and human error.
  • The growth of SMEs is stagnant: Usually, only large invoices from well-established companies are taken as collateral due to the massive amounts of work involved in checking the legitimacy of invoices received from the SMEs.
  • Restricted privacy:
  • Reducing Popularity: Due to better alternative schemes standing in the financial market, the traditional ID (Invoice Discounting) market is experiencing a reduction in clients.

Invoice Discounting on Blockchain: The missing link

Peer-To-Peer (P2P) invoice finance platforms provide solutions allowing SMEs to get immediate advances on trade receivables, rather than waiting for customers to pay invoices with long remittance terms.

This Invoice discounting platform represents sophisticated and structured specialty finance services which automate the whole process from generation of Invoice to paying back the investors.

As a result, the economy will heave ahead as whole potential liquidity will become available to the SMEs that need it.

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