United States, 9th Sep 2022, King NewsWire, Factoring refers to a range of services rendered to suppliers trading on credit and based on financing the receivables that result from credit sales. It is a core part of the business ecosystem, with annual turnover in the trillions of dollars.
According to research by the Asian Financial Services Association, the volume of trade receivables that are not invested in by banks and other financial institutions globally is approximately $10 trillion. These receivables take the form of invoices, which are typically issued by businesses to their customers for goods or services rendered.
In recent years, there has been a growing trend of businesses using blockchain-based solutions to manage their invoices and receivables. Blockchain allows for invoices to be stored on a distributed ledger, which can provide greater transparency and traceability than traditional methods. It also eliminates the need for a central intermediary, which can help to reduce costs.
One company that is looking to capitalize on this trend is Bulla Network, which has developed a platform that uses NFTs (non-fungible tokens) to represent invoices, as part of its broader Web3 accounting solution.
The NFT invoice solution
NFTs are a type of digital asset that is unique and cannot be replaced by another identical asset. This makes them well-suited for representing invoices, as each one can be uniquely identified and tracked. Bulla Network’s platform is designed to streamline the invoice management process for businesses, by providing a single place to create, issue, and track invoices. This technology also enables businesses to factor their receivables, using the NFTs as collateral.
The company offers a cross-chain solution that allows businesses to issue invoices on multiple blockchains, including Ethereum, Polygon, and Fuse.io. In addition, Bulla Network’s commerce protocol allows all related parties to see Bulla transactions in one view, automatically updated in real-time. This offers businesses greater visibility and transparency into their receivables.
The benefits of NFT invoices
There are several advantages of using NFTs to represent invoices, compared to traditional methods. First, NFTs offer greater transparency, as all transactions are stored on a public blockchain. This can help businesses to track their receivables and ensure that payments are made on time.
Second, NFTs provide a tamper-proof record of invoice data, as they cannot be altered once they have been created. This can help to reduce disputes between businesses and their customers.
Finally, NFTs offer the potential for businesses to automate their invoicing processes, by integrating with smart contract platforms such as Ethereum. This could help to save time and reduce costs.
As small and medium-sized businesses face economic challenges due to a volatile business environment, the ability to streamline their receivables management through NFT invoices could provide a much-needed boost. Bulla Network’s solution has the potential to disrupt the $10 trillion receivables market, by providing a more efficient and transparent way of managing invoices.
Media Contact
Organization: Bulla Network
Contact Person: Michael Revy
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Country: United States
Website: https://bulla.network/