Invoice financing company Invox Finance has officially kicked off its token sale.
Invox’s token presale began Thursday (March 15), enabling investors to purchase Invox Tokens at a discounted price. Buyers can access the Australian company’s Invox Finance platform, a peer-to-peer invoice financing portal that allows buyers and sellers to connect directly and swap data. Buyers on the portal can finance their supplier invoices and collaborate transparently to settle bills.
“The current problem with traditional invoice financing is that the financier does not have a direct relationship with the buyer and … the financier solely trusts the information provided by the seller,” Invox said in its announcement. “As a result, the relationship between the buyer and the seller is not completely transparent to the financier, and this increases the risk of an unpaid invoice and refused settlement.”
The invoice financing solution operates on blockchain technology to facilitate the movement of funds and manage invoices and other data.
The company’s founders plan to invest a combined $390,000 into the company when the initial coin offering (ICO) is complete, the press release said. 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 from Engadget said nearly half of the ICOs initiated in 2017 have failed, either with companies unable to raise funds or with ICOs ultimately turning out to be a scam.
Invoice finance has been pinpointed as one of the many potential targets of distributed ledger disruption. Another company, Populous, also facilitates invoice finance via blockchain technology. The U.K. company announced plans to launch sometime this year, deploying smart contracts to enable small businesses to find financing for unpaid invoices.