– Where Blockchain Meets Trade Finance
LiqEase is a blockchain powered company that helps companies to unlock their accounts receivable and accounts payable.
Despite Fintech breakthroughs, the global trade finance credit gap is over US $1.5 Trillion. Due to limited liquidity in the trade finance market, banks have little incentive to develop this financing. Leaving companies with no choice but to wait until they get paid by their clients.
Therefore, small companies have to accept the payment terms outlined in their accounts receivable, no matter how onerous they may be. Financial Technology (FinTech) companies have discovered solutions in this gap in global trade finance. However, in the absence of new instruments and marketplaces that connect different trade players, new ventures are yet to make a major difference.
This is why, on any given day there are around $43 trillion of accounts receivable or accounts payable on the books of businesses worldwide, of which, only around $3 trillion of the total are financed (Kemper, 2016).
In a market size of $43 trillion USD in accounts receivable globally, the LiqEase strategy focuses on the $514 billion USD cross-border deal flow between China and the EU. To achieve this, we have developed a decentralized platform that creates a secondary marketplace for trade-finance digital assets. This allows companies to get paid faster whilst extending their accounts payable time-frame.
For more details on how the platform works, watch our demonstration video.
The platform will operate in primary markets where holders of accounts receivables and accounts payable will engage in factoring, reverse factoring and trade documents financing. The platform creates a secondary market where the exchange of newly created debt securities will be available for professional investors (funds, family offices, banks or professional brokers) to trade.
LiqEase has achieved a number of milestones so far:
- Raised over US $3 Million in equity funding
- Use-cases with Porsche Design, Dupont Chemicals and AB InBev
- Winner of SLUSH Shanghai 2017
- First project invested by Emurgo (Cardano)
The LiqEase platform will be the first to migrate from Ethereum to Cardano blockchain. This move is expected to occur in Q1 2019, but is heavily dependent on the development progress of Cardano.