VoloFin to introduce blockchain-led invoice financing solution for SMEs

VoloFin to introduce blockchain-led invoice financing solution for SMEs

The company will be accountable for all activities performed on the platform such as due diligence, documentation, compliance, credit appraisal, transaction processing, and monitoring

VoloFin, a specialty finance company based in Singapore, has hinted the launch a blockchain-led invoice financing platform on April 1, 2021, for small and medium-sized companies and investors across the United States, Singapore, and India.

Essentially, invoice or receivables financing through factoring comprises of companies selling invoices at a discounted rate to financing companies, which later is sold to investors.

It is worth mentioning that banks today are stepping away from trade financing due to growing capital requirements, this has driven the adoption of factoring which has emerged as an integral source of finance for SMEs.

According to a statement by Mohit Agarwal, Chief Executive Officer at VoloFin, the entire factoring process is carried out in the blockchain platform. Investor’s money is held in escrow which they can see from where it has been invested and can stipulate the parameters of their investments.

He added that buyers of the products offered by SMEs are primarily located in developed nations such as Europe, the United States, Australia, South Korea, and Japan.

Additionally, Mr. Agarwal mentioned that the company will take complete responsibility for all the activities performed on the platform such as due diligence, documentation, compliance, credit appraisal, transaction processing, and monitoring.

Headquartered in Singapore, VoloFin provides Invoice Factoring for Small and Medium Enterprises across India and Singapore. The factoring technology is delivered via a next-gen platform which is powered by Blockchain.

As per recent reports, the company has announced the commencement of its operations in the US through appointment of Joseph Noto as the President and Chief Executive  Officer of VoloFin USA Corp.

Source Credit: https://www.reuters.com/article/us-invoice-financing-blockchain-idUSKBN2BF1EB