Tokenized Accounts Receivable Financing

The core pain point is the 60- to 120-day payment gap. You've delivered goods or services to a creditworthy buyer, but your cash is locked in an invoice. This creates a working capital trap: you can't pay your own suppliers, invest in growth, or seize new opportunities. Traditional financing like factoring is often expensive, slow, and comes with onerous covenants that tie up your entire receivables ledger. The result is a constant, expensive scramble for liquidity that erodes margins and stifles competitiveness.

The blockchain fix is fractional, on-demand liquidity. By tokenizing a single, verified invoice—creating a digital twin on a blockchain—you can sell fractions of that future payment to a global pool of institutional investors. This process, known as Asset-Backed Commercial Paper 2.0, happens in near real-time. The smart contract automates the entire lifecycle: verification of the underlying trade, issuance of tokens, distribution of payments, and final settlement. This transforms a static, illiquid asset into a dynamic, programmable financial instrument.

The business outcome is a dramatic improvement in Return on Capital Employed (ROCE). Instead of waiting months, you access up to 95% of the invoice value within 24 hours, often at rates significantly lower than traditional factoring. This isn't a loan; it's an advance against a verified asset. The automation slashes administrative overhead by eliminating manual reconciliation and paperwork. Crucially, it's non-recourse and off-balance-sheet, meaning it doesn't increase your debt burden or require personal guarantees, preserving your credit line for other strategic needs.

Consider a manufacturer with a $1 million invoice from a Fortune 500 retailer. Instead of waiting 90 days, they tokenize it on a regulated platform. An investment fund buys 70% of the tokens, providing $665,000 instantly. The manufacturer uses the cash to fulfill a new, profitable order. When the retailer pays, the smart contract automatically distributes the $1 million: $665,000 plus a small fee to the investors, and the remaining ~$335,000 to the manufacturer. The supplier accelerated cash flow without debt, and the investor earned a yield on a short-term, transparent asset.

The Pain Point: Illiquid Capital and Opaque Risk. For CFOs, a $10 million AR ledger is not cash in the bank. It's a promise to pay, often locked for 60-90 days. This creates a working capital crunch that stifles growth and forces reliance on expensive, one-size-fits-all factoring. The process is manual, paper-heavy, and plagued by a lack of transparency. Buyers have no incentive to pay early, and suppliers have no way to prove the quality of their receivables to a broader pool of financiers, leading to high discount rates and restrictive covenants.

The Blockchain Solution: Tokenization as a Single Source of Truth. Here, a smart contract digitizes an invoice, creating a unique, non-fungible token (NFT) that represents the legal claim to payment. This token is programmable money. It contains immutable data: invoice amount, due date, buyer identity, payment terms, and proof of delivery. This creates an auditable, tamper-proof record that all permissioned parties—supplier, buyer, and financiers—can trust without manual reconciliation. The receivable is no longer a line in a spreadsheet; it's a verified digital asset on a shared ledger.

The Business Outcome: Unlocking Liquidity and Efficiency. With a tokenized, verified receivable, the game changes. Suppliers can access a competitive secondary market instead of a single factor. Financiers can perform near-instant due diligence on the underlying asset and buyer's credit, dramatically reducing risk premiums. This enables dynamic discounting where buyers can pay early for a small, automated discount, improving their own supply chain health. The result? Suppliers get capital faster at lower cost, buyers optimize their cash flow, and financiers gain access to a new, transparent asset class with programmable compliance.

Quantifying the ROI. The shift from manual AR financing to a tokenized platform delivers measurable returns. Companies can expect reduction in days sales outstanding (DSO) by 20-40%, directly freeing up working capital. Financing costs can drop by 2-5 percentage points due to reduced risk and competition. Operational costs for reconciliation and dispute resolution plummet as the shared ledger automates audit trails. This isn't just a tech upgrade; it's a fundamental rewiring of B2B finance for speed, transparency, and mutual value creation.