Businesses cannot grow by default. Certain criteria must be met. Funds are propelling forces for any business that wants to thrive. Aside this, centralized institutions have introduced many concepts that will help them forge partnerships and boost their development. The success of Mergers and Acquisition and its synonym Shared Economy was unprecedented. Nonetheless, there is another way of funding a business.
Most times, customers patronize a business because of its loyalty programs. At other times, it is because the company offers them reduced rates. However, some companies enjoy customers’ patronage because they allow them collect goods and pay later. This has its downside. Most often, customers fail to meet up with given deadline for repayment. This forces business into bankruptcy and in severe cases, these businesses might fold.
Invoice financing is one out of many ways businesses can raise funds. To stay afloat, a business can approach a bank or any other financial institution for loans. Most times, businesses issue goods on credit to attract customers (though that may change later-on). Invoice financing can be likened to coupons. When you buy goods from a walk-in store especially during festive period, you qualify for some discount or free shopping. You are then given a coupon worth stipulated amount. That is what we have here on invoice financing.
Customers don’t just buy goods on credit; they rather leave a sort of collateral. This collateral is an invoice that contains specific amounts. A business can then use the invoice in recovering its funds from the customers. They either deploy invoice factoring or discounting. The current system seems fraught with problems and that’s what Populous is here to solve.
Populous was developed as a decentralized coin on the Ethereum block chain. It will be wrong relegating it as a coin. Populous is worth more than this. Populous is literally a life-saver for small and medium businesses that might have fallen under the sledge hammer of customers’ nefarious credits.
At the moment, the conventional invoice financial module is not as vibrant as it was. This is because most of these invoices were unpaid. An unpaid invoice reflects on company’s account. They lose on both ends. Populous is here to help small businesses scale the hurdle of unpaid invoices and further position invoice financing for better services.
Traditional invoice financing was regulated by centralized platforms. Populous is using the distributed ledger of the block chain in bringing decentralization to the system. The platform introduced the concept of sellers and buyers.
A business can trade invoices at its disposal to willing partners. These invoices are offered up as crowd-sales. In the event of a successful transaction, the buyer is paid. Populous’ P2P invoice financial runs across the lines of Business-to-Business. A business can purchase invoices from another and issue payments for same.
Centralized platforms are already holding sway in the industry. Tough they may have their short falls, they seem better than any oncoming competition. Populous is bringing a new approach to the entire scene. However, it remains relatively unknown in the industry. Keying-in the keyword “invoice financing” on the Google search bar will bring up many results. Seeking for companies that offer the service will surely bring up centralized ones. It is quite hard finding Populous listed there. It therefore leaves doubt on users’ minds on the project’s transparency. Nonetheless, Populous had traded in green for many months and this is key indication of its amazing prospects.
As usual with block chain projects, Populous is also fast-tracking itself with three different tokens. The PXT token is used by businesses in the retrieval of each customer’s history. The idea is to curtail unpaid invoices. By making everyone’s financial history public, a company can decide on collecting the customer’s invoice or not. Customers’ with low financial throughput might not be qualified.
The Populous Platform Token (PPT) is Populous’ official token. PPT is the primary channel to accessing the platform and can be used in paying for invoices. The other coin used by Populous is known as Pokens. Pokens is the in-token used for payments on Populous. The token has same functionality as fiat as it can be tied to traditional fiat currencies such as PJY, USD, EUR and GBP. Pokens are stable coins and will feature I transfer of values on Populous.
Populous is bringing revolution to invoice financing. It allows companies list their invoices with the aim of attracting investors. There is no doubt that invoice financing will get facilitated throughput. More so, the backing of Populous by the block chain will bring transparency, security and security to an already plagued invoice financing setting.
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