VoloFin launches a blockchain invoice financing platform
LONDON / HANOI (Reuters) – Specialist finance firm VoloFin will launch a blockchain invoice finance platform for investors and small and medium-sized enterprises (SMEs) in the United States, India and Singapore on April 1, its report said. managing director at Reuters.
Funding invoices or receivables through a process known as factoring involves companies selling discounted invoices to finance companies, who then typically sell them to investors.
With banks moving further away from trade finance due to capital requirements, factoring is becoming an important source of finance for SMEs.
“The entire factoring process is carried out on the blockchain platform. Investors’ money is held in escrow, they can see where it is being invested and can stipulate the parameters of their investments, ”VoloFin CEO Mohit Agarwal said.
Buyers of products made by SMEs will typically be located in developed countries, including the United States, Europe, Japan, South Korea and Australia, he said.
Singapore-headquartered VoloFin will take responsibility for all activities on the platform, including due diligence, compliance, documentation, transaction processing, credit assessment and monitoring, said Agarwal.
Reporting by Pratima Desai and Mai Nguyen; edited by Nick Tattersall