Hive platform to deliver automated invoice finance and new liquidity to SMEs through blockchain technology
In the wake of the financial crisis, invoice finance has taken on growing importance for companies seeking liquidity in an increasingly difficult funding environment. The invoice finance industry is expanding at a rate of 14% per annum, adding over a trillion euros to annual financing volumes which surpassed EUR 3 trillion (USD 3.4 trillion) in 2016.
Despite sector growth, SMEs remain at a clear disadvantage over larger enterprises in securing access to short-term financing from traditional lenders due to prohibitively expensive credit assessment processes, perceived risk and credit rationing.
The Hive (HVN) Project uses Ethereum blockchain (distributed ledger) and smart contract technology to transform the current invoice finance landscape by providing small businesses with access to peer-to-peer finance without the need for centralized intermediaries.
The Hive Project https://hive-project.net/ has announced the development of the first cryptocurrency invoice financing platform focused on providing new liquidity pools for small and medium-sized businesses. Powered by the risk-lowering technology offered by blockchain, the Hive Project is an end-to-end platform that will give small and medium size enterprises (SMEs) easy access to short-term financing by turning their accounts receivables into tradable assets.
The Hive Project aims to disrupt the current invoice finance landscape by providing small businesses with access to finance without the need for centralized intermediaries.
Hive (HVN) uses Ethereum blockchain (distributed ledger) and smart contract technology to assign a unique fingerprint to every invoice issued by tokenizing invoices and publishing them on blockchain. This innovation enables businesses to automate their invoicing process, bringing blockchain technology closer to commercialization.
Ultimately, The Hive Project’s end state will include a full marketplace with advanced trading analytics for peer-to-peer lending. This will rapidly increase the liquidity available to small businesses and create a central database of invoices available for scoring and auditing. In addition to bridging the liquidity gap for small businesses, the technology provided by The Hive Project will help credit checks made on companies and facilitate rapid and real-time auditing.
“We want to help small businesses solve their liquidity issues by leveraging blockchain technology to provide financing options previously only available to large companies,” said Jure Soklic, CEO and co-founder of the Hive Project. “Our platform will dramatically streamline invoice issuance and settlement processes, optimizing small and medium-enterprises’ ability to access liquidity for day-to-day operations and to finance expansion.”
A (HVN) token grants the token holder the right to purchase invoices on the Hive platform and obtain credit scores for companies which have established a financial track record on the Hive blockchain. Invoices are rapidly uploaded to the Ethereum blockchain by invoice sellers looking for liquidity.
“The Hive Project helps small businesses automate invoicing and payments, delivering the benefits of blockchain innovation to commercial entities previously deprived of ready access to finances,” said Richard Titus, Advisor to Hive Project, Former SVP Samsung Electronics Visual Display, and CEO of Prompt.ly. “Hive Project’s end state, a marketplace with advanced trading analytics for peer-to-peer lending, will rapidly increase the liquidity available to small businesses and expand today’s often mercenary ecosystem of factoring and lending.”
The Hive Project aims to secure initial capital of BTC 2,000 through its token (HVN) crowdsale scheduled for six weeks starting Monday, July 3, 2017. The capital will be used for technical infrastructure development and the creation of the Hive Invoice Financing Fund (HVNX), which will be allocated to financing SMEs through the collateralization of invoices. More information can be found in The Hive Project whitepaper.