By Pratima Desai and Mai Nguyen
LONDON/HANOI, March 23 (Reuters) - Specialty finance firm VoloFin will launch a blockchain invoice financing platform on April 1 for investors and small and medium-sized firms (SMEs) in the United States, India and Singapore, its chief executive told Reuters.
Invoice or receivables financing through a process known as factoring involves companies selling invoices at a discount to financing companies, which then typically sell them to investors.
With banks increasingly stepping away from trade finance due to capital requirements, factoring is becoming an important source of finance for SMEs.
"The whole factoring process is conducted on the blockchain platform. Investors' money is held in escrow, they can see where it's invested and can stipulate the parameters of their investments," VoloFin Chief Executive Mohit Agarwal said.
Buyers of the products produced by the SMEs will typically be located in developed countries including the United States, Europe, Japan, South Korea and Australia, he said.
VoloFin, which is headquartered in Singapore, will take responsibility for all activities on the platform including due diligence, compliance, documentation, transaction processing, credit appraisal and monitoring, Agarwal said.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.