UntangledFin
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UntangledFin

The new era of smart contract based supply chain financing

The future of trade and supply chain finance is tokenised_Part 3

  1. Funders fund the Lender (warehouse facilities)
  2. SMEs supply to Buyers and issue an invoice. Once invoices are accepted by approved Buyers they are tokenised
  3. Lender buys/finance tokenised invoices. Approved Buyers pay Lender directly via wallet which automatically set off the financing
  4. Inventory can also be used as collateral. In this case, the service of an external collateral manager or a commodity exchange is required for safe custody. Once the inventory is sold and an invoice is accepted, the invoice token replaces inventory token as collateral.
  5. Purchase Orders (PO) from approved Buyers are also accepted as collateral. Once PO has been accepted, SMEs can apply for financing. When goods have been produced and delivered, an invoice token will be issued in place of the PO token as collateral for the financing
  6. Once asset tokens have been built up to certain threshold they will be sold to an SPV for securitisation. A bond token will be issued to investors and DeFi
  7. Proceeds from securitisation is used to repay Funders or to originate more assets
  8. Collections from assets/Buyers is used to fund redemption of principal and interest to investors

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