Invox Finance Platform | Invoice Lending on the Blockchain by semensichev

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· @semensichev ·
Invox Finance Platform | Invoice Lending on the Blockchain
![](https://steemitimages.com/DQmWfVEsdbA9CbnP5jePcaEMtmF1e67AY3Eg5SAKC2HR6st/image.png)
Normally when you are doing business with another company what you do is you get asked to provide a price, you provide the price as a seller. the buyer then sends you a purchase order, you then supply the agreed goods and the work order is signed off, completed or there's a proof of delivery if you're selling products. And then the invoice is sent by the seller to the buyer. So, that's in a nutshell that's how the business is conducted in the world and it's the same throughout the world. Everybody does the same thing pretty much and Europe is the largest player in the invoicing finance global market. One point nine trillion dollars in a year. It's quite incredible, the whole market is valued at two points eighty-five trillion US dollars a year. So, we're talking market that is applicable to nearly every business on the planet. The blockchain that they're using is the ethereum blockchain. It's an ERC20 token. Ethereum smart contracts will be used and they will have dynamic invoice smart contracts to eliminate the use of paper and other around antiquated resources.

The Invox Finance Platform will allow sellers, buyers, investors and other service providers to directly connect, interact, share and distribute information.

Other Financing Option For Sellers:

1. Bank overdraft
Banks will generally provide overdrafts if collateral is provided as security.
In the event that businesses do not have any tangible assets that the bank would accept as collateral (such as real estate), banks will generally be very reluctant to provide unsecured overdrafts to these businesses.

2. Peer-to-Peer
In recent times, a number of online peer-to-peer invoice lending platforms entered the market. These platforms directly connect invoice sellers with investors and attempt to automate
a number of processes involved in traditional invoice financing.

3. Unsecured business loan from a non-banking financier
The interest rates charged by these financiers are usually very high (i.e. in the order of 40% to 70% per annum) with
principal and interest repayments required to be made on a weekly basis.

4. Populous
There is also a new entrant to the market
– Populous invoice discounting platform implemented on the Ethereum Network.
A comparison between Populous’ platform and the Invox Finance Platform is outlined on page 16.

Invox Platform Overview
![](https://steemitimages.com/DQmUV28XXpQpuarNUpLFnfgZB4p8ybxAwBjKk843tV6QUKq/image.png)
The seller will also be able to grant access, control the privacy of the invoices and the information as well. There will be a search functionality, once the invoices get settled, the invoice smart contracts will distribute back the value of the invoice to the seller. Also, anything payable to the investor and they'll get paid in interest as well. You can also involve third parties this way and third parties would be for example the personal properties and security register in Australia that allows security interests to be registered and there are obviously similar bodies in US, Europe and other jurisdictions. Also, there will be a dispute resolution service as well. So, that that will be able to provide reliable evidence to a corpse or mediators if there's a further problem with the invoice. To give you an idea how expensive it’s going to be to execute a dynamic invoice smart contract. It will cost you around 70 cents and this is quite cheap. There will obviously be a fee return to the platform as there has to be, they’re not going to work for free but if you are adding a dynamic invoice to the system that's what's going to cost you.

1. Dynamic Invoice Smart Contracts
A set of Dynamic Invoice Smart Contracts will be deployed to the Ethereum mainnet. They will facilitate the creation of completely dynamic invoices and registration of these invoices on a distributed ledger.
Dynamic invoices will also store additional information such as invoice verification status, advances made against the invoices and payments received. They will also ensure that the information stored on the ledger is transparent, reliable and secure.
Blockchains enable data structures representing invoices to be deployed and to be tamper proof. This enables all participants of the ledger to view the
state of the invoice with respect to time.

2. Loans Smart Contracts
These smart contracts will also be deployed on the Ethereum mainnet. These contracts will enable the flow of funds between investors, sellers and buyers. They will also direct funds to
a specific party (when certain smart contract conditions are met) and enable fragmentation of loans to reduce risk to the investor.
The loan terms and conditions will be coded into the smart contracts,
providing all participants certainty that their terms and conditions will
be enforced.

3. User Access and Processing Hub
This is where all parties will meet and interact with one another. The Hub’s main purpose will be to allow investors, sellers, buyers and other interested parties to have a seamless and efficient way of communicating, exchanging information, and facilitating the initiation and execution of various smart contracts and processes.

4. Bank API Integration
A linux / python cron job will orchestrate calls from our banking partners’ API to the smart contract. This will be hosted on Microsoft Azure cloud hosting, using “Key Vaults” for key management. Future deployments may be run on local data centres using
Gameloto HSMs to facilitate transaction signing.
Further detailed description of the Invox Finance Platform is provided in “The Platform” section of this White Paper.

Overview Platform
![](https://steemitimages.com/DQmUpx4sTkGDL8uZ58tQsMt1WSvi2oiySnV349b8siHtAjA/image.png)
The advantages over using this dynamic invoicing smart contract, your records are secure, it’s going to be easy to use and automate it as well. So, you don’t have to fiddle around too much. Lower interest rates and insurance obviously from traditional methods. Secure reporting as well. Integration with other software, there will be an API interface that will function with major accounting software platforms and other payment applications etc. Your data, integrity of data will be coded to the contract so you don't need third parties to adjudicate or look over paperwork etc. And of course, the biggest selling point here is the lower cost of implementation so no need to make your own software or do anything else. The ethereum network will act as a virtual machine, as a paper use system and you basically just use the system and you pay every time you execute a dynamic invoice smart contract. There is also another type of smart contract called the loan smart contract and this basically will allow the loans to be fragmented to many different investors. So, that you don't just need one big investor to cover a major contract. You can actually disperse it to many smaller investors and also it provides a sort of escrow to ensure that the money is received and then it goes to be distributed correctly. The benefits of this are obviously the security that it provides, the way that it can fragment the invoice over and above a complicated process, database process or even up a paper process that would be very difficult to achieve this. The seamless flow of funds between parties is another advantage as well. So, all the funds in the smart contract are seamless, it’s reliable, fast, transparent and it also will integrate with accounting software as well so the platform is going to provide an API interface.

The hub is going to be the user access interface and it's going to process all the transactions through the smart contracts. For your user access, you're going to have to do know your customer verification and it will be a desktop, mobile user interface so you'll be able to create your own profile, manager profile etc. There'll be a rewards program which sounds interesting. It will generate reports for you as well which obviously you’ll need for your businesses and it will also provide the third-party access through API as I mentioned. It will communicate with the accounting software etc. It will also have risk management section so it will process your application, verify your ID, collect external data and then perform risk analysis and assessment as well. It will continue to monitor the risk and it will have a report generation a function as well. With the loan management, it will interact with the loan smart contracts and it will match your risk profile so if you're relatively low risk there will be a lot more or investors willing to deal with you.

Website: https://www.invoxfinance.io

Telegram: https://t.me/InvoxFinanceCommunity

Twitter: https://twitter.com/InvoxFinance

Whitepaper: https://www.invoxfinance.io/docs/Invox-Whitepaper.pdf

Facebook: https://www.facebook.com/Invox-Finance-162381191061327/

My Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=1178847
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