Pilot Project: Discovering the Future of Decentralised Finance

As Lendflo continues to support UK businesses with fast and affordable single invoice factoring, we’re excited to announce our latest collaboration with Centrifuge.

While many financial service providers keep their customers in the dark with an opaque and disconnected financial system, we’re on a mission to bring transparency to borrowers and create an easier lending experience.

Our pilot project with Centrifuge is just the first step in our grand vision to build a fairer lending system using decentralised finance.

Join us as we explore blockchain adoption and how we’re using Centrifuge’s cutting-edge tech to build a worldwide network of buyer-supplier relationships you can trust.

What Is Decentralised Finance?

Before we get into the nitty-gritty of Centrifuge’s smart tech, let’s clear the air around the trending use of the term ‘decentralised finance’ or ‘DeFi’ as it’s more commonly known.

Decentralised finance is an entirely new financial ecosystem, which relies on Blockchain technology. With Blockchain, open-source networks allow for financial activity to take place without single-points-of-failure, like a bank, to mediate transactions.

Blockchain essentially creates peer-to-peer networks that store identical records of transactions and other financial information across thousands of computers.

The most valuable by-product of a decentralised financial system is trustlesness as it allows you to move away from untrustworthy companies, banks and people. Instead of people relying on regulatory bodies or the internal politics of a bank to handle their hard-earned cash, your money is protected by the security of the peer-to-peer network.

Introducing Centrifuge

Centrifuge is an open-source financial operating system with a clear mission — to connect the global financial supply chain.

Their leading peer-to-peer technology allows businesses of all shapes and sizes to make thousands of transactions while maintaining ownership of their data.

Whether it’s keeping tabs on sensitive company information, safeguarding business relationships or upholding your reputation as a trustworthy financial body, Centrifuge can lend a helping hand.

Centrifuge caught our attention as we were looking for innovative solutions to build a fool-proof accounting system which registers every single invoice that passes through our books.

What’s In It For Us?

We’re excited to build a peer-to-peer network with Centrifuge for three key reasons:

• To Prevent Double Funding. As our single invoice factoring technology scales and the industry gathers momentum, we hope the lessons from this pilot project will prevent customers from receiving double funding.
• To Improve Transparency. Creating a Blockchain representation of invoices puts customers in control of their money by offering a reliable and accessible record of all transactions. Sophisticated lending protocols and risk assessments offer investors improved transparency over the performance of a borrower’s portfolio.
• Instant Access. Speed is everything when it comes to decentralised finance. Centrifuge’s smart contracts use encoded rules to give borrowers instant access to cash.

The Pilot Project: Centrifuge Tinlake

As one of the first companies to work with Centrifuge’s technology, we’re excited to play a key role in refining their product and making big leaps in the world of decentralised finance.

Specifically, our pilot project makes use of Centrifuge’s latest product innovation, Tinlake.

Tinlake is an asset-backed lending smart contract platform designed for asset originators, lending platforms, payment companies, embedded software solutions and banks that seek to utilize the full potential of decentralised finance. Tinlake is based on Ethereum — a public blockchain which people have been using across the world for almost half a decade.

The protocol coordinates the various parties required to structure, administer, and finance collateralised pools of financial obligations — for example, invoices financed through Lendflo.

Tinlake’s protocol creates affordable, simple and flexible financing for Lendflo to enhance transparency and accessibility for traditional investors. The protocol also allows us to access instant funding from a new category of crypto lending protocols such as MakerDAO and Compound.

Lendflo X Tinlake

How does Lendflo leverage Tinlake?

Lendflo pools any debt incurred when a borrower receives an invoice payment against a trusted blockchain cryptocurrency. We then use this pooled debt as decentralised lines of credit (DeLoC). These are securitised loans which can be seamlessly and instantaneously generated through Tinlake.

What Will We Learn From the Collaboration?

The ultimate purpose of the pilot project is to prove that Lendflo and Centrifuge can combine their technologies to help fund businesses that need it most.

Whether it’s a manufacturing company struggling with delayed payments or a lean startup pitching for funding, our mission is to change the way we think about debt and empower businesses to thrive in a competitive marketplace.

If you’re interested to learn more, check out the user interface to see transparent transactions that we executed in the pilot.

Discover the Future of Finance with Lendflo

Here at Lendflo, our mission is to make finance more affordable and accessible to all.

Enjoy secure transactions, rapid approvals and instant cash with Lendflo’s leading technology.

We’re excited to be partnering with some of the world’s hottest fintechs to change the landscape for small business financing.

Access instant cash on outstanding invoices to inject vital funds and grow your business to new heights.

Check out Lendflo & Centrifuge today.