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Your Invoice Financing Management

Know Your Invoice

by matesol
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Know Your Invoice

This is especially useful for suppliers who often work with the same customers and many know that invoices need to be approved and processed. Transaction records on the blockchain are always accessible and verifiable.

Know Your Invoice

With Know Your Invoice, InvoiceMate simplifies banks’ time-consuming due diligence processes. You can independently verify the integrity and authenticity of the invoices provided as collateral. Not only lenders, but all business partners, including borrowers themselves, business partners, investors and independent auditors, benefit from know your invoice

Financial experts see this as an impediment to economic growth.  Pakistan’s domestic credit to the private sector  reached  15.04% of GDP in 2020, according to a World Bank report. Significantly lower than regional economies and emerging markets.

One of the main reasons for the underdeveloped credit market is the high proportion of informal or informal economic sectors, especially small and medium enterprises. Banks and other financial institutions are reluctant to extend credit lines to small businesses due to the lack of collection guarantees. Let’s take a look at the classified benefits of KYI. 

KYC (Know Your Customer) is, as the name suggests, about knowing your customer. As with most business matters, the company is the customer, so the terms KYC or KYB are used interchangeably and interchangeably. So what does it mean to know your customer?

KYC is a very important factor or practice for the financial industry in general and the financial industry in particular.

Upon receipt of payment of these bills, the lender’s account will be deleted. All of these factors have made small business loans more profitable than they used to be, but they’re still not up to par. Another reason for the weak credit market is the high level of public sector borrowing in Pakistan. Banks always want to extend credit lines to the public sector as it is safer than the private sector.


Invoice Financing

Basically, it’s about knowing all the details you need about your customer/organization. In the post-9/11 world, it has become important for the financial sector and industry alike. Like any other industry, the financial industry is still in its early stages.

The potential and growth are very promising, but there is still much work to be done. 

Invoice Finance is a type of short-term borrowing in which the borrower finances the outstanding invoices (accounts receivable).

The lender immediately issues a portion of the receivable amount to the borrower. This allows the borrower to maintain  reasonable cash flow on this amount, thus increasing  productivity.Banks and other financial institutions are more likely to help the public sector because of their regulatory guarantees.

As in other Islamic countries, many people in Pakistan are reluctant to participate in fundraising activities. This is because Islamic Sharia prohibits it. As a result, many are looking exclusively for Shariah-compliant financing solutions.

MateSol’s InvoiceMate is the world’s first complete invoice management system on blockchain.

The entire billing process from procurement to payment is transparently recorded on the blockchain. This record is immutable and verifiable by all parties at any time. Banks and other financial institutions can easily verify the authenticity of invoices and related records, increasing the availability of invoice financing for businesses. In this way, the company can overcome liquidity challenges and maximize its  potential.

InvoiceMate enables invoice-based financing  based on Islamic principles. Invoice Financing is also known as Accounts Receivable Financing or Invoice Discounting (Confidential). With this type of borrowing, the company uses the note as collateral and immediately receives a percentage of the outstanding amount

At the end of the billing period, the amount borrowed, including the agreed percentage, will be returned to the Lender as interest/service fees.

The lender will collect the amount from the customer as soon as it is due. With this type of financing, the company receives an agreed amount upfront and  the lender is responsible for collecting the invoices. After collecting the amount owed against the bill, the lender withholds the loan amount and incidental fees and transfers the balance to the company.

The invoice finance market for MSMEs, especially his SMEs, remains untapped and largely untouched. SMEs make up 90% of the world’s businesses and employ 50% of the world’s workforce. In emerging markets, SMEs make up more than 40% of this total.

At the same time, seven-tenths of its jobs are created by small and medium-sized enterprises in emerging markets.

All these figures demonstrate the importance of SMEs in the global economy in general and in emerging markets in particular.

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