Invox Finance is a decentralized invoice financing solution built using Ethereum smart contracts. Find out how it works today in our review.
What Is Invox Finance?
Invox Finance, found online at InvoxFinance.io, aims to disrupt the world of invoice financing. Invox Finance will use blockchain technology to disrupt today’s invoicing industry.
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.
What Problems Does Invox Finance Seek 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
Ultimately, there’s a lack of transparency in the invoice financing industry. There’s a huge risk of fraud. Sellers don’t always participate honestly in the market.
How Does Invox Finance Work?
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.
Use Cases For Invox Finance
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.
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.
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.”
How Do Invox Tokens Work?
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.
Who’s Behind Invox Finance?
Invox Finance is led by Alex Mezhvinsky (Co-Founder), Adam Mezvinsky (Co-Founder), and Daniel Tang (Co-Founder). Prior to launching Invox Finance, the team founded ABR Finance, one of Australia’s leading invoice financing solutions.
The company is based in Adelaide, Australia.
Invox Finance Conclusion
Invox Finance aims to be a powerful all-in-one solution for a new era of invoice financing. The goal is to create a decentralized P2P platform where sellers, buyers, and investors are connected. Invox Finance will solve major problems in traditional invoice financing, including a lack of transparency between buyers and sellers and a lack of access for individual investors.
To learn more about the platform, visit online today at InvoxFinance.io.