Receivables Financing, sometimes referred to as Factoring or Receivable Discounting is a form of trade finance solution, in which a company sell its receivables to a financial institution at a discount. Receivables Finance allows a seller to get paid earlier, thus improve its cash flow and working capital while mitigating credit risk.
Companies need to use and integrate multiple different receivable finance solutions into their business, making the whole process inefficient and difficult to manage.
Current Receivables Finance solutions are relatively expensive to manage, and therefore are mainly focusing on large corporate clients, leaving mid-market and smaller companies with limited access to finance their working capital.
Today’s Receivables Finance solutions are often paper-based, involving multiple manual processes, increasing the risk of errors and making it difficult to scale.
All the transactions and steps taken are stored on a digital ledger and processed on the Marco Polo Platform, leveraging the Corda blockchain technology. The Receivables Finance solution is based on the Marco Polo Network, the fastest-growing trade finance network with over 30 of the world’s largest financial institutions.
The Marco Polo Platform enables users to create and manage workflows, rules, business logic to automate the matching of purchase orders, invoices and other trade finance relevant processes. Trade data is shared via APIs on the Marco Polo Network and automatically matched.
Experienced trade finance and technology professionals launched the Marco Polo Network project. It is the embodiment of a shared will and vision to take global trade to the next level.
The initiative brings together banks, non-bank funders, corporate organisations from various sectors as well as technology providers, logistics companies, insurers and other value-added providers from across the wider trade ecosystem. Together, we’re collaborating to shape the network and drive it forward.
The Marco Polo Network allows members to mutualise their R&D investments in trade finance and blockchain and provides participants with the optimum environment to research, create, and test such innovations so that advancements can be a benefit to their customers and partners, at scale and for a low marginal cost.