About Invox Finance
The Invox Finance Platform is an invoice lending platform disrupting a US$2.8 trillion industry. Lead by a stellar team with over $30 million of invoice financing behind them, Invox Finance is creating a decentralized peer-to-peer invoice lending platform that will allow sellers, buyers, investors, and other service providers to directly connect, interact, share and distribute information.
Currently, the invoice financing industry is held back by:
- High-interest rates
- Lack of contact between parties
- High risks
- Lack of investment diversity
Invox Finance’s decentralized platform allows dynamic invoices to be created on a distributed ledger, benefiting all parties from an increase in trust, transparency, efficiency, and security with minimal fees. Invoice fragmentation allows investors to spread their risk across hundreds of invoices, allowing for very low-risk investments with maximum returns.
The founders of Invox Finance have many years experience running a successful invoice financing company in Australia – ABR Finance. ABR Finance has been in operation since 2012 and has helped fund businesses throughout Australia with $30 million AUD in invoicing, across a broad range of industries including IT, wholesale, construction, transport, engineering, equipment and labor hire, publishing and professional services. ABR Financing will also partner with the Invox Finance Platform to provide an initial reputable investor for sellers.
Currently, only one other competitor exists in this space – Populous Invoice Discounting, who has a market cap valued at over $800 million dollars at the time of writing. Invox Finance has the utmost respect for the goals the Populous team is aiming to achieve. The currently centralized invoice financing environment is in need of disruption, and both Invox Finance and Populous are at the front line.
Current invoice financing methods are stagnant and in need of disruption. Invox Finance solves the:
- Lack of contact between involved parties
- Transparency issues surrounding the process
- Security issues
- Risks for investors
- Risk of fraud
through the creation of dynamic invoices on a distributed ledger, connecting buyers, sellers and investors throughout the entire process.
Invox differs from Populous in these cases:
- The inclusion of the buyer in the platform
- Creation of dynamic instead of static paper-based invoices
- Equal access for investors (no bidding on invoices)
- Loan fragmentation
- A greater amount of invoice financing experience
Every business needs money or regular cash flow to survive. Steady cash flow helps with the daily business expenses. Unavailability of consistent cash flow doesn’t mean that the business is into losses, it could be a case where it provides services on credit. That’s why many Businesses adopt Invoice financing. However, there’s a lack of transparency that’s why many of them don’t go for it. But with Invox Finance, the problem is solved.
What is Invoice Financing?
Invoice financing is a way in which Businesses sell the invoices which are due to financiers/investors for a less price. These investors give them instant funds which they could use for daily expenses. After the credit period expires, the financiers collect the due amount from the customers. It is said that the Invoice financing industry is valued at 2.85 trillion USD.
What is Invox?
Transparency is a significant problem when it comes to Invoice Financing. Invox Finance is a decentralised system built using the blockchain to solve the issue of transparency. It brings a new approach to the traditional invoice financing. It not only helps with openness but also helps in saving time and reduces risk. Let’s see the outstanding features of it to know more:
The Invox Finance system uses the blockchain technology and is decentralised. Being decentralised enables all the parties involved in a transaction to interact, connect, distribute, and share information directly. Being in direct touch not only brings in a trustworthy environment, but also saves enormous time.
Reduced Interest Rates
The traditional invoice financing system included financing institutions, banks and other interested institutions which would buy the invoice from the seller. However, the Invox Finance system allows individual investors to invest their money by purchasing the invoices of the businesses they like. Individuals generally would charge less rate of interest than the big institutions. That’s why the seller won’t be at a loss, and the investor also would be able to make good profits.
The Invox Finance platform uses the Ethereum smart contracts to create dynamic invoices. Invoices haven’t changed for a long time, in a traditional invoice financing, the business owners can fake an invoice, or the investor can lie about not getting paid by the buyer. However, that’s not going to happen here as everything is transparent and the invoices would be updated in real-time, and any interested parties could access it from anywhere.
Diversification of Investment
In the traditional invoice financing business, a financier doesn’t have much choices. He isn’t allowed to buy a “fragment” of the invoice. Which means, if an invoice is worth $10,00,000, the investor will either have to buy the entire invoice or leave it. But with the Invox Finance system, he can divide his investments and purchase fragments of an invoice. So, if a situation like the above-mentioned takes place, he could split his investment and obtain a piece of that invoice and invest the rest in other invoices.
The Invox finance system reduces the risk by allowing the investors to diversify their investment. An investor has an option to invest his funds into various sellers. So, instead of buying a big invoice from a single seller, the investors would purchase fragments of every invoice from different sellers. So if a buyer (customer) declares himself as insolvent or commits fraud, the investor won’t be losing much of his money.
Invox Token and ICO
Invox Finance Pvt Ltd. is also going to launch Invox tokens with the system. The tokens will be used to reward the buyers and sellers who would verify the transactions, payment of invoices, and settlements. Also, they are mandatory if one wants to be a seller on the platform. To be seller one has to buy the yearly subscription by paying a certain amount Invox tokens.
The company will also be launching an ICO, the purpose of it is to sell the platform membership by selling the tokens. One can get the tokens at much cheaper rates in the pre-sale. For more details visit https://invoxfinance.io.
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