Nowadays, invoice financing represents 10% of banks' provided credit, and it has become a significant source of working capital finance globally after the restriction of bank financing due to the 2011 credit crunch (Wehinger, 2013). In particular, invoice financing helps companies, especially Small and Medium Enterprises (SMEs), that have cash flow problems because of late payments from customers (i.e., invoices are usually paid in 30–90 days).
In the overall process, the authenticity of the invoice plays a vital role. Data suggest around 10% of fraud is still happening because of fake invoices. To solve this issue, we came up with Xeggo-invoice.
What it does
An invoice finance loan is short-term working capital finance, allowing invoicers to finance their commitments on a transactional basis (as evidenced by the appropriate trade documentation). An invoice finance loan can support all types of transactions and is an advance of funds in either the stablecoin or other of the token obligation. A loan can be provided post-invoice generation to match the financing requirements of the invoicer at the different stages of the trade transaction.
Benefits for the invoicer:
Access to funding/liquidity to cover the period from when funds are paid to the supplier to the receipt of the funds from the ultimate sale of the goods/services (cash conversion cycle). This frees up available working capital. Potential to negotiate more favorable commercial terms with loan providers and benefit from potential early payment discounts The flexibility of trade finance loans allows invoicers to access funds when they need them most with alignment to specific services and business requirements. In Web2.0 finance, this can be aligned with terms like: 'Trade Credit', 'Cash Advances', 'Receivables Discounting', and/or 'Term Loans'.
Xeggo Invoice also runs on 4 different networks - Celo, Polygon, Cronos and Gnosis
Technologies and Tools Used:
- Filecoin for storage and distribution of files
- Fluence for storing and reading encrypted data from a decentralized perspective.
- Fleek/Vercel for static frontend+CDN hosting
- Solidity for writing smart contracts
- Truffle/Remix/Hardhat for smart contract lifecycle.
- React for Frontend for dApp
- Subgraph for blockchain event reads.
Challenges we ran into
There are some networks where Moralis and subgraph weren't supported like Cronos and gnosis chain.
Accomplishments that we're proud of
Deployed multichain solution Integrate our UI, backend and contracts
What's next for Xeggo Invoice
Add another side of the ecosystem for Lenders and loan collateral Release on mainnet (In Progress) Smart Contract audit(s) Community promotion and adoption.