In a traditional supply chain finance model where the main credit carrier are always those core enterprises, only primary suppliers or the ones who have direct and first-hand transactions with core enterprises can graft their credit for accounts receivable financing. Therefore, small and medium-sized enterprises in the upstream have little access to financing through their own supply chain, which will result in a continuous increase in the balance of accounts receivable as well as the liquidity risk of the same. The platform, which brings together financial institutions and those small and medium enterprises, was built to tackle financing difficulties by using Blockchain tecnology so that every detail of a transaction happened in a complete supply chain can be held on a blockchain. Meanwhile, the supply chain finance platform built by Wanxiang Blockchain plays a significant role in the industry in various aspects, including balancing the interests of all parties in a supply chain, stablizing the supply-demand, strengthening the effective management of accounts receivable, promoting the benign development of the closed-loop industrial chain, and supporting a "penetrating" regulation of financial markets.
Shanghai Wanxiang Blockchain Inc. | contact@wxblockchain.com
Wanxiang Blockchain
provide blockchain+
solutions
By offering blockchain+ solutions to different enterprises, Wanxaing Blockchain aims to create a brand new business ecological cluster which is cross-industry, cross-frontier and cross-company. Various projects across different industries led by the company have been verified successful. Scroll to check out some of the cases.
Supply Chain Finance Platform
Introduction
Business model
- The platform can effectively promote the circulation of digital vouchers based on accounts receivable as assets.
- All the participants involved in the circulation of electronic vouchers will earn a bonus.
- Electronic vouchers payable can be split indefinitely from the first-tier supplier to the second-tier, the third-tier supplier and so on.
- The small suppliers can achieve discount in advance through core enterprises.
- It can deduct the cost of capital and solve financing difficulties of small suppliers.
Values/ Advantages
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The platform takes advantage of blockchain technology to ensure the authenticity and security of data, so that the sovereignty of data belongs to whom created it.
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The transparency of how the system operates allows to prevent illegal transactions.
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The smart contract ensures the timeliness of payment and improves the cash flow turnover.
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Every transaction record can be tracked on the platform, which mitigates the degree of information asymmetry, thus reducing financing costs.
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The rating evaluation system and risk warning system can be established through data mining to promote innovation in the bill business.
