Invox Finance: Blockchain Invoice Lending

No matter how great your business model is, how profitable you are or how many investors are interested in supporting your business, you can't survive if you can’t manage your company’s cash flow.

In fact, a prominent study from the financial services company U.S. Bank found that as many as 82 percent of startups and small businesses fail due to poor cash-flow management. So, even if you’re a brilliant entrepreneur in every other way, you must stay squarely focused on managing your company’s cash flow to avoid putting your business in imminent danger.

Drawbacks of Traditional Invoice Financing include, for example, invalid invoices, high legal costs, disputes, and cases of defrauding investors. Investors don’t have a relationship with buyers and only have the information provided by sellers who are interested in brightening up the real situation. This exposes investors to a considerable risk, and they in return toughen their terms accordingly. Invox Finance Platform is aiming to eliminate these disadvantages by making the situation transparent and confident for all the parties.

ABOUT INVOX FINANCE

Invox Finance is a decentralized blockchain based platform that focuses on reinvention and reshaping the system of traditional invoicing.

The platform is launched by the same team behind ABR Finance, one of Australia’s leading invoice financing solutions. Since 2012, ABR Finance helped fund businesses across Australia with $30 million AUD in invoice financing. Now, they seek to use that experience to bring invoice financing to the blockchain.

Invoice financing, by the way, is different from invoicing and financing. Traditional invoice financing is based on a financier purchasing invoices from the seller. In return, the financier agrees to pay money to the seller against each invoice. The buyer who purchased the seller’s products must pay the invoices directly to the financier.

Basically, invoice financing involves buying invoices at a discount price, then hoping to make money when the client eventually pays the invoice at the full rate. That’s the industry Invox Finance seeks to disrupt.

The Invox Finance Platform is an invoice lending platform disrupting a US$2.8 trillion industry. Lead by a stellar team with over $30 million of invoice financing behind them, Invox Finance is creating a decentralized peer-to-peer invoice lending platform that will allow sellers, buyers, investors, and other service providers to directly connect, interact, share and distribute information. Currently, the invoice financing industry is held back by: High-interest rates, Lack of contact between parties, High risks, Lack of investment divers it, Disputes, Defrauding, Insolvency. Invox Finance’s decentralized platform allows dynamic invoices to be created on a distributed ledger, benefiting all parties from an increase in trust, transparency, efficiency, and security with minimal fees. Invoice fragmentation allows investors to spread their risk across hundreds of invoices, allowing for very low-risk investments with maximum returns.

INVOX: PROBLEMS TO SOLVE

Invox Finance aims to solve a number of problems in today’s invoice financing industry, including:

• Purchasing an invoicing from the seller and advancing the funds against it does not involve a direct relationship with the buyer; the financier is required to solely trust the information provided by the seller
• Because of this situation, the relationship between the seller and the buyer is not completely transparent to the financier; financiers might inadvertently purchase an invoice that has little chance of being paid, for example, or the seller might sell an invoice for work that was poorly performed
• This exposes the financier to a considerable degree of risk; if the invoice is disputed or disagreed, then the financier will lose money

HOW INVOX FINANCE WORKS

Invox Finance plans to solve the problems listed above using blockchain technology to create a decentralized, peer-to-peer invoice lending platform.

That platform will allow sellers, buyers, investors, and other service providers to directly connect, interact with, share, and distribute information. The goal is to create a trusted environment by facilitating transparency between parties and then rewarding performance.

Other key features will include a built-in reward system.

There will be no centralized service provider on the Invox Finance platform. Instead, the platform will be governed by a transparent set of rules executed on a fully distributed ledger – just like other decentralized autonomous organizations, or DAOs.

INVOX FINANCE BENEFITS

Who will use Invox Finance? Here are some of the people who can benefit from the platform:

• Investors can access higher rates of returns while diversifying their investment portfolio
• Sellers can sell invoices to accelerate their cash flow
• Buyers can receive extended invoice payment periods then be rewarded for verifying invoices
• Those who use Invox Finance will not need to know anything about the blockchain. The user interface will allow payments in all major fiat currencies.

INVOX FINANCE FEATURES

Some of the key features of Invox Finance include:

Lower Rates For Sellers:

Sellers can obtain financing at lower rates than what they normally receive from a traditional financier.

Diversify Investments:

Investors can access a broader range of investment products. Today, invoice financing-related investments are typically reserved for banks and finance companies. Invox Finance will allow anyone to participate in the marketplace, making it easier for investors to diversify.

Direct Access To Investors:

Sellers will have direct access to individual investors through the Invox Finance platform. It’s a peer-to-peer lending environment that aims to benefit both sellers and investors.

Decentralized Platform:

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

Dynamic Invoice Smart Contracts:

Invox Finance will deploy “Dynamic Invoice Smart Contracts” to the Ethereum mainnet. These smart contracts will facilitate the creation of dynamic invoices, including the registration of invoices on a distributed ledger.

Smart Contract Loans:

Smart contracts for loans will also be deployed on the Ethereum mainnet. These contracts will enable the flow of funds between investors, sellers, and buyers.

Bank API Integration:

Invox Finance will integrate with banks using APIs that connect to the smart contract. “A linux/python cron job will orchestrate calls from our banking partners’ API to the smart contract,” explains the Invox Finance whitepaper. “This will be hosted on Microsoft Azure cloud hosting, using “Key Vaults” for key management.”

INVOX FINANCE TOKEN

Invox Tokens are ERC20 tokens on the Ethereum blockchain. The tokens will provide access to the platform through the Trusted Member Program, then reward work performed for the platform. The system will reward buyers and sellers with Invox Tokens for invoice verification, payment of invoices, and settlements.

Invox Finance smart contracts are Ethereum smart contracts on the Ethereum mainnet.

Invox Finance Token ICO Details:

Invox Tokens (INVOX) will be sold through an ICO scheduled from March 15 to March 24, 2018.

55% of the total supply of tokens will be distributed during the ICO. There’s a minimum investment of 0.1 ETH required.

Token Type: We consider our token not to be a security due to its utility and consumptive tokens and have obtained qualified legal advice concerning our token.

Token Ticker: INVOX

Emission Rate: No new coins will ever be created after the ICO.

Total Supply: 464m Invox Tokens

Token Network: Ethereum (ERC-20)

Distribution: Tokens will be distributed after the token sale ends.

Token Value:1 ETH = 10,000 INVOX + any bonuses

Lock-up: No bonus lock-ups below 100ETH

BONUS

Stage 1: 3/04/18 to 28/04/18 BONUS: 20%

Stage 2: 29/04/18 to 19/05/18  BONUS: 10%

Stage 3: 20/05/18 to 09/06/18  BONUS: 5%

Stage 4: 10/06/18 until ICO concludes  BONUS: 0%

MILESTONE

Stage 1

Invest A$500,000 in cash as capital

Create an initial community

Develop the whitepaper

Prepare to conduct the ICO

Define the system framework

Engineer the Dynamic Invoice Smart Contract

Stage 2

Develop the MVP

Conduct the ICO

Stage 3

Complete the MVP

Start user testing to guarantee the release of a quality product

INVOX TEAM

BOARD OF ADVISERS

MORE INFORMATION ABOUT INVOX FINANCE:

WEBSITE | ANN THREAD | WHITEPAPER

INVOX FINANCE SOCIAL MEDIA:

TWITTER | FACEBOOK | TELEGRAM

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