A Blockchain-Based Solution to Liquidity Needs

From Max Bronstein at Nasdaq:

“In a world where growth moves faster than payments, many small businesses struggle to pay off their urgent capital expenditures. Companies of all sizes have short-term costs that are integral to their operations: Office rent, short-term investments and employee salaries are all generally paid on a weekly or monthly basis, while accounts receivables can remain unpaid for 90 to 120 days. Blockchains are great for tokenizing financial assets and enforcing complex changes in ownership. Given the vast number of intermediaries necessary to manually assess the risk of each invoice, factoring can be made much more efficient and equitable by decentralizing the verification and payment functions.”

The cutting technology is driving the current market of P2P lending as well as Invoice Factoring. In Asia’s Fintech hub Singapore, market players are investing in these technology development to help SME’s financing in a more innovative and efficient way. Thanks to the support and investment from government, it is foreseeable that in the near future the technology will change the way of banking. 

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