Episode 35: Tokenizing Invoices | Invoice Token | Invoice Market

In this podcast we address questions like: "To what is the invoice token a good solution?", and "In what stage of adoption of tokenizing invoices are we?"What is Invoice Market?The invoice market is a place where invoices trade as a financial instrument: factoring companies finance invoices, fintech companies, and banks. For now, we will call those: Originators. At Invoice Market, Originators can sell invoices to Institutional investors. The Institutional Investors profit from the invoices, and the Originators free capital by distributing their balance sheet risk.This process goes as follows:A seller (Company A) sells a product or service to a debtor (Company B). The seller creates an invoice. After verification, the factoring company acquires the invoice in return for financing (usually around 80 to 95% of the total invoice). The financier holds the risk of the invoice on their balance sheet and is required to hold capital for that risk. As these costs are high, financiers tend to look to distribute the risk to investors.  Investors buy the invoice and take over the risk of the financier. When the payment term is due and the invoice paid by the debtor (Company B), the financier receives the total value of the invoice. The platform then distributes the remainder of the invoice to the investors.In the Invoice Market use case, the invoice plays a significant role. And there are several issues with invoices and the way they function in an invoice market:- There is no standard invoice format- Verification of invoices is cumbersome, leading to unverified invoices being seen as secure titles- Double spending issues- Manual payments are prone to errorThe Invoice Token Use Case aims to make invoice markets more efficient by creating a non-fungible token (NFT) that will represent the invoice, the underlying receivable cash flow, and have all the functions of an invoice programmed in it built on a DLT specific ledger with an agnostic smart contract.Guests: Dion Bongaerts (RSM Erasmus) & Arnout Buschenhenke (ABN AMRO) Host: Alex Bausch (2Tokens)Do you want to join one of the use cases?   You can also contact us via [email protected] Read more on our blog https://www.2tokens.org/newsFollow us on LinkedIn: https://www.linkedin.com/company/2tokens &  Twitter: https://twitter.com/2tokens_org?s=20Website: https://www.2tokens.org/Subscribe to our newsletter: https://share.hsforms.com/1bf2NmSX1Tp6hFgNpN8_iWQ4tojo Send us Fan MailSupport the showDo you want to join one of the use cases? Contact us via [email protected]  Read more on our blog 👉 https://www.2tokens.org/news Follow us on LinkedIn 👉 https://www.linkedin.com/company/2tokensTwitter 👉 https://twitter.com/2tokens_org?s=20 Website 👉 https://www.2tokens.org/