Invoice finance company Invox launches ICO
Bill finance company InvoxFinance officially launched its token sale.
Presale of Invox tokens started Thursday (March 15), allowing investors to purchase Invox tokens at a discounted price. Buyers can access the Australian company’s Invox Finance platform, a peer-to-peer invoice finance portal that allows buyers and sellers to connect directly and exchange data. Buyers on the portal can fund their supplier invoices and seamlessly collaborate to pay invoices.
“The current problem with traditional invoice financing is that the financier has no direct relationship with the buyer and … the financier only trusts the information provided by the seller,” Invox said in its announcement. . “As a result, the relationship between buyer and seller is not completely transparent to the financier, increasing the risk of an unpaid invoice and refused settlement.”
The invoice finance solution runs on blockchain technology to facilitate the movement of funds and manage invoices and other data.
The founders of the company plan to invest a total of $390,000 in the company when the initial coin offering (ICO) is completed, the press release states. Institutional and retail investors can participate in the purchase of Invox Tokens.
While the ICO is an increasingly popular way for companies to raise funds, the strategy is also raising eyebrows among regulators. Reports last month of Engadget said that almost half of the ICOs launched in 2017 failed, either with companies unable to raise funds or with ICOs that ultimately turned out to be a scam.
Invoice funding has been identified as one of many potential targets for distributed ledger disruption. Another company, Populous, also facilitates invoice financing through blockchain technology. The British company has announced plans to launch this year, rolling out smart contracts to enable small businesses to find financing for unpaid bills.