Invoice financing is a financial service where businesses obtain funds by selling their unpaid invoices to a third party. This practice allows companies to access working capital immediately, rather than waiting for customers to pay. The third party, often a factoring company or financial institution, advances a portion of the invoice value and collects the full amount from the customer upon maturity. It serves as a short-term lending solution to improve cash flow.
Context
In the digital asset realm, invoice financing is a sector where blockchain technology seeks to introduce greater transparency and efficiency. News reports sometimes cover platforms using smart contracts to automate and decentralize the process, potentially lowering costs and increasing access for small businesses. The application of decentralized finance to traditional financial instruments like invoices represents a growing area of innovation.
The protocol tokenizes global trade receivables, providing DeFi users with a high-yield, USD-denominated asset uncorrelated to crypto market volatility.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
