BankEngine

The platform serves as a decentralized data room for all invoices submitted, each of which has a unique record. These invoices can therefore be made available as a shared source of liquidity for factoring and invoice financing. Furthermore, businesses can take advantage of the cryptographically secure nature of the Platform blockchain network to upload all of their financial documentation. Access to detailed financial data about a specific company or invoice can be granted only by the company itself or the recipient of the invoice. This enables real time auditing to be conducted, improves the credit scoring process, expedites credit approvals, etc.

Invoice financing can be structured in a number of ways, most commonly factoring or discounting. This whole process involves a lot of manual work. It involves manually checking if invoices were submitted to creditworthy commercial clients, if those clients agree with factoring of the invoice, if they confirm that goods or services were really delivered, etc. And all of this needs to be confirmed by written and signed agreements. This whole process is costly and time consuming which prevents MSMEs from utilizing factoring for smaller amounts. Also some of the bigger clines (for example food stores and chains) by default disallow transfer of invoices to 3 parties in order to reduce their manual work increase and to reduce risk of paying into the wrong account.

Invoice verification is a critical tool for preventing fraud in factoring transactions. Beyond enhancing the security of the factoring process, it also expedites payments. Fraud can occur when a contractor or supplier deliberately submits false, inflated, or duplicate invoices, either acting alone or in collusion with contracting personnel due to corruption. This makes invoice verification an essential and resource-intensive part of the factoring process.

The platform allows investors to manage the transfer of both rights and assets directly on the platform in various formats. This includes dividing ownership based on the share of rights, as well as offering the possibility of holding fractional rights or actual ownership of a tokenized asset. These assets, which are currently inaccessible to the broader public, can now be made available through the platform.

The smart contract design employs a modular structure, making it highly reusable and easy to upgrade. Exchanging event-related information within a distributed ledger not only facilitates the necessary trigger events for goods to reach their final destination, services to be fulfilled, and suppliers to receive payment, but also automates these processes. The blockchain’s capability extends beyond mere information exchange along the supply chain—smart contracts ensure that trigger events are not just initiated but automatically executed.

In cryptocurrency transactions, an escrow service acts as a trusted intermediary, safeguarding the interests of both the buyer and the seller. During a trade, the escrow service holds the agreed-upon assets until specific conditions are met, reducing the risk of fraud or default and building confidence among all parties involved.