Follow on Google News
News By Tag
News By Location
Follow on Google News
Fintech Company Launches New Blockchain Tool to Reduce Risk of Invoice Finance Fraud
For the first time, banks and factoring companies will be able to derisk invoice and receivable finance transactions, reducing compliance costs and providing SMEs with lower finance rates.
Invoice finance fraud is a huge problem because a financier has no way of knowing if an invoice is fraudulent or has already been financed by another funder. When a default occurs, there may be several funders who all think they own the invoice or receivable. This problem is magnified in cross border transactions, especially when only paper invoices are used and in markets where there is no central registry with which to register a charge.
InvoiceCheck is quick, easy - and free to use. A bank or factoring company simply enters basic invoice parameters to perform an initial check - in less than 30 seconds. Using blockchain technology, InvoiceCheck keeps transaction data anonymous whilst also providing information on whether an invoice is potentially fraudulent or being double financed. A key difference with InvoiceCheck is that it does not rely on a central registry – using instead the power of a decentralized blockchain. Data is protected from potential competitors and is tamper resistant once on the blockchain.
London School of Economics alumnus and TFM Executive Director, Raj Uttamchandani, explains that the tool was born out of his own frustrations in trade finance.
"The inability to validate invoices provides yet another obstacle for SMEs in obtaining finance. Combined with the high compliance costs and fines, traditional players are also currently unable to finance SMEs in a cost effective manner, which causes unnecessary obstacles for exporters and slows growth. With InvoiceCheck, we fill this gap by utilizing the blockchain in a way that has never been done before."
For the first time, banks and factoring companies can all be easily linked for mutual benefit - without fear of giving the data to a competitor with vested interests.
InvoiceCheck has received a huge amount of interest and TFM is working with banks, factoring industry organizations and regulators to promote it's use – with the ultimate goal of eradicating fraud and providing liquidity to SMEs at reasonable rates.
Unlike other solutions, the data on InvoiceCheck is not owned by one central entity.
"We believe InvoiceCheck is a game changer and is an example of the perfect use of a decentralized blockchain."
The product is still in the early phases and TFM will be implementing more functionality as suggested by users.
For more information, please visit: http://www.tradefinancemarket.com/
Trade Finance Market
Account Email Address Account Phone Number Disclaimer Report Abuse