Factorin, a blockchain-based trade finance platform serving small and medium-sized businesses, has completed 10,000 transactions during its nine months of beta testing. Factorin is a fast growing and revenue generating business that seeks to partly address the estimated $45 billion gap of trade finance for small- and medium-sized businesses in Russia, according to company’s estimations.
A large Russian retailer with revenue exceeding $5B and twelve financial institutions, including banks and factoring companies, signed on to the platform. All of the pilot corporate participants are embedding Factorin into their business processes after the company launches its platform for commercial use in the second quarter this year. As of now, Factorin has opened on-boarding for SMEs, thus making them fully ready for the new digitized process of legally-binding documents exchange.
The company uses blockchain technology to automate and improve trade finance transactions, making them faster, more transparent and more secure for all of the parties involved. Using their own node connected to the platform, large buyers interact with all of the factoring companies in one place. Banks also benefit as the possibility of fraud is greatly reduced. Suppliers enjoy faster transaction time, as they get access to financing within one day of applying via the Factorin platform.
Factorin instantly creates all of the necessary documents and encrypts transaction details for greater security. Buyers and financial companies, which have connected their nodes to Factorin, manage the process through a straightforward web interface. Suppliers can also use the web interface or a mobile application.
Andrei Maklin, Co-Founder and CEO of Factorin, commented:
Factorin allows businesses to interact in a unified digital space, enabling their systems to instantly and securely exchange data with one another. This helps all the parties involved to lower their costs and transaction time, cut out the risks related to human error. I strongly believe that technology is the future of trade finance, which should unlock financing for countless small and medium-sized businesses, that are currently underserved by the market. As a next step we’re planning to expand geographically with our European partners as well as introduce additional financial instruments to the platform.
More information at https://factorin.io/