Populous World and Invoice Discounting

Invoice discounting is the process of selling invoices to a third party, to advance up to 95% of the value of the invoices instantly, rather endure the common payment cycles between your business and your customer, which can take up to 90 days or longer. This alternative funding method is most popular amongst SMEs, that seek an external source of financing other than banks and traditional lenders.

By way of an example: Clothing Ltd receives an order for 100,000 scarves, priced at £1 per scarf, from CustomerX. Clothing Ltd produces an invoice for £100,000 with a 30-day payment term. Fabrics Ltd needs to buy and source a large quantity of fabric to fulfill its next order and pay for labour and equipment costs, so it could really appreciate an advancement of cash from this invoice sooner than 30 days.
Fortunately, Mr. Kapoor, a wealthy private investor, steps in. He offers to loan Clothing Ltd £95,000 now on the agreement that he will receive the full £100,000 when it is paid by CustomerX.

The formula is a win for all parties. Clothing Ltd takes a measured hit on profit from the invoice but is able to release the cash immediately. CustomerX receives the number of scarves as agreed. Mr. Kapoor in turn earns £5,000 in 30 days speculating that the transaction would go through without any disruptions.

The invoice discounting process is completed confidentially so the supplier paying the invoice will still be paying Clothing Ltd the full amount on the invoice. They need not be aware that Clothing Ltd is adopting an invoice finance service.

The Populous World formula

Populous World is the first platform to utilise Ethereum blockchain technology for invoice finance. Blockchain implements transparency and efficiency to the process and transactions, ensuring that the risk of fraud and costs are all positively affected. The platform provides the means for global investors to participate in an auction of invoices, the advantage of this being cross border payments can be taken within seconds, allowing the invoice sellers to receive their cash instantly. This effective funding formula provides substantial short-term funding solutions to increase business activities, allowing SMEs to receive more cash flow or working capital upfront, at a lower discounted rate.

With an easy and intuitive user interface, investors can easily choose and track the invoices they want to bid on. Innovative features such as XBRL targeted acquisition and Altman Z scoring will ensure a regular flow of credit graded invoices for investment.

For more information on invoice discounting for your business, our team of expert funding specialists are here to help:
https://populous.world