The blockchain platform Factorin has transformed the trade finance market in Russia in only a year since its launch
- Blockchain , Trading Systems
- 03.06.2020 12:47 pm
In only a year, a young technology company was able to change the trade finance market in Russia. The distributed platform automates the interaction of the customers’, suppliers’ and factors’ accounting systems, and removes all manual work in the preparation, verification, and approval of documents. Factorin reduces the overhead costs of all processes and minimizes the risks associated with human errors and fraud.
Thanks to Factorin, trade finance has become more accessible for small and medium-sized businesses. Suppliers can receive payment within just two hours after delivery. The process used to take 1-2 weeks.
Some of the largest Russian retailers Magnit and Dixy ($20 and $5 billion USD annual turnover respectively) process all trade finance for their suppliers via Factorin platform. 30 bank entities have processed $502 million USD financing to hundreds of companies. Factorin is attracting new clients from the retail, telecom, oil and gas, and metallurgy industries.
Factorin at a glance
1 year since launch
18 team members
30 banking entities on board
246K supplies and invoices financed
$502M USD financing provided
40 major software releases, 600k+ lines of executable code
49 mainnet nodes in decentralized network
112k+ transactions per month
The team behind Factorin will launch a new platform in Europe in the near future. Few details are currently available, but this will be an advanced decentralized platform that combines all the expertise the team gathered on the frontier of distributed ledger technology.
Factorin solves problems that affect the whole world. During the fall of 2019, the Asian Development Bank (ADB) estimated the global trade shortage of small and medium-sized businesses at $1.5 trillion, with the coronavirus pandemic exacerbating this problem. Increasingly, more and more small and medium-sized companies are unable to supply goods and services with deferred payment, and buyer corporations are not ready to revise the established rules for working with counterparties. Factoring - which means raising funds under the guarantee of payment from the buyer - could be an ideal way out for all participants, but carrying out a factoring transaction usually requires a complex workflow. As a result, banks around the world reject 45% of applications from SMBs, and according to the Association of Factoring Companies, 96% of small and medium-sized businesses do not even try to attract
Andrei Maklin, Factorin co-founder, said: “Factorin is one of the largest B2B blockchain platforms in Europe. With 49 mainnet nodes and above 100k transactions monthly, Factorin is one of the world’s leading blockchain powered B2B trade finance platforms. We are a licensed EDI operator, which makes it possible to digitize any type of customer contract and transaction. The platform provides customers with the widest range of trade finance tools including factoring, dynamic discounting and more than 10 ready-made solutions. All this is thanks to an incredibly talented and hardworking team that strives to release new products month after month so our users can thrive, even during a crisis.”