Hong Kong launched first blockchain tech trading platform to provides secure lending services to the enterprises.
【Published by Sam Lam】
Hong Kong has launched a loan platform corresponding to the widely used of blockchain technology. In the first quarter of the year, Hong Kong launched its first business trading platform which based on the blockchain technology — “trustME” was established to enable SMEs in China, Hong Kong and Taiwan. It can be easily used to optimize business processes and reduce cost at the same time. More recently, MoneySQ launched an inventory financing and accounts receivable financing testing services. They use “trustME” blockchain technology based on Point of Sale System to provider lending companies to borrow without additional collateral.
After the financial crisis and the uncertain global economic outlook, traditional lending companies have tightened their financing standards, some banks are increasingly refusing to “Accounts Receivable (AR)) or “Inventory Financing (IF)) for grant loans. In this case, SMEs lending become much more difficult, and successful loans are actually given to large-scale SMEs occasionally. MoneySQ knows what SMEs actually need, so they use the Point of Sale System (POS) to help SMEs’ maintain accounts receivable content in real time to finance and facilitate the effective use of accounts receivable.
Steven (李根泰), founder and chief executive officer of MoneySQ, pointed out: “The main reason for the rejection of credit applications by SMEs is because of the lagging data of financial statements and credits ratings of SMEs provided in the past, that caused credit risk relatively largely. Banks or finance companies must conduct financial due diligence and send teams to the company to review the operational and financial status, which consumes manpower and resources. This caused many e-commerce companies to fail to submit financial statements and cannot evaluate them. In the financial situation or its loan amount, is generally low, which is not in line with the cost-effectiveness of approving its loans, and many SME loan applications have been rejected. In view of this, MoneySQ uses trustME blockchain technology to crack the SME financing barrier. The chances of SMEs being approved for working capital loans will increase.”
Although lending companies in the market have provided AR to SMEs, MoneySQ is still the first platform to provide AR and IF services using blockchain technology. Yang Weiqiang, trustME financial technology director, said: “The trustME blockchain technology can connect the SMEs’ own POS in order to let trustME gets all the content on its POS in real time, and traces the SME inventory records to audit the financial status of the company. It is said that the traceability record process is simple, and companies that join MoneySQ will receive different forms of support, including recording receipts, updating point-of-sale terminals, and labeling each item with a global positioning system that records the specified goods. Warehouse stock, update application software, etc. If the sales volume data is combined with the stock data, it means the operation is normal.”
Steve (李根泰), MoneySQ founder and chief executive, added: “Similarly, from the point of sale terminal data, MoneySQ will be more likely to find abnormal transactions. Take milk tea stores for example, if it sells dozens of glasses per hour on weekdays, but it opens on a certain day. With thousands of documents that they provide, we will immediately doubt their data and can immediately find out what lies behind. Because trustME’s blockchain technology helps us to identify the authenticity of the lending company, then we will conduct a sophisticated risk assessment to determine whether or not to approve. The process is much faster than the traditional bank loan process, and the content on the blockchain cannot be arbitrarily falsified, it can speed up the SME loan application process while reducing MonyeSQ risk to achieving a win-win situation.”
Steve continued: “SMEs need more inventory before the peak season, and the relative loan demand is higher. Before the off-season, the purchase price is appropriate, and the loan amount is low. MoneySQ can adjust the loan amount according to the situation and try to match the actual loan demand of the enterprise. It can also increase brand awareness and allow direct contact between the seller and the buyer to increase buyer confidence.”
■ Source: HK ITblog
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