Synchronise financial and information flows with physical flow of inventory
Inventory finance (part of our supply chain finance solution) is typically set up by a lender/bank who invites their corporate clients and other service providers such as collateral manager to the project.
Inventory loans can be taken directly from the project dashboard based on a pre-approved facility. Any movements such as disbursement or repayment of loan or underlying collateral such as sales or commodity price fluctuations will affect collateral ratio which in turns will trigger loan management actions automatically.
We also work with licensed commodity exchanges to tokenise warehouse receipts ready to be traded or financed.
Seamless e-invoicing and invoice financing transactions
Once an invoice is accepted it will be tokenized (the process of creating a token on the blockchain to represent the accepted invoice). Selected invoices under supply chain programs can be used as collateral for invoice loan or sold to a bank/investor at a discount in exchange for cash.
Binkabi platform coordinates the entire tokenisation of invoice to invoice financing and invoice marketplace. During the loan duration, invoice token is locked up in a smart contract (like a register of financed invoice) preventing double financing.
Once the buyer settles an invoice which has been financed, the proceed will first go to offset the invoice loan first before the remainder being paid to the seller.
SUPPLY CHAIN FINANCE PROGRAM
Integrated financing solution
If inventory and invoice finance can be separate solutions in their own right supply chain finance program combines both.
When a corporate buyer accepts an invoice to pay later, the invoice is tokenised and used as collateral allowing the supplier to access funding from the program lender. As the lender has a recourse to the corporate buyer who has a better credit rating than that of a typical supplier, the lender can lend to the supplier a better terms. This is the essence of supply chain finance or reverse factoring.
Alternatively, the corporate buyer can borrow from the lender on the back of their inventory or their own invoices (to their own buyers). With this funding, corporate can then settle supplier invoice in full early or even extend credit to suppliers based on accepted purchase orders.
All these help the corporate buyer to secure their supply chain to ensure they have raw materials for processing. Suppliers can access finance at more competitive rates. Banks can lend securely and profitably. It is simply Win-Win-Win
Inputs financing programs provide loan in kinds to farmers. However, lenders are not typically set up to lend small amounts to individual farmers. Simply booking, disbursing, monitoring and collecting individual loans prove too high costs for banks let alone credit risk.
Binkabi's inputs financing solution enables the issuance of inputs voucher on the blockchain to a batch of farmers. Working with extension agents, farmers can then claim these inputs vouchers (simply by scanning a QR code on a mobile device) for actual inputs from inputs providers. Inputs providers will then claim the loan disbursement from the program lender based on spent inputs vouchers. Extension agents monitor farmer's production process, . At harvest the produce is secured and transported to an accredited warehouse where the program's off-taker would buy. At that point, the inputs loans are extinguished and remaining proceeds paid to farmers.