The first blockchain marketplace with “buy now pay later” terms
ModulTrade has signed an agreement with Konkrete Distributed Registries for providing decentralized invoice factoring services on the MT Market. By integrating Konkrete’s invoice factoring platform — Factorium — into ModulTrade’s value ecosystem, ModulTrade users will benefit from innovative payment terms. Sellers will be able to grow their businesses faster, while buyers will enjoy easier terms for their purchases.
1. Empowering small businesses
Besides being able to effortlessly sell globally, businesses opening a webshop on the MT Market will have the ability to sell their B2C invoices upfront, thus boosting sales. This will also help to better address cash flow issues, typical of small businesses.
Invoice factoring is a short-term financing solution used by many businesses to address cash flow issues. Where a business has an invoice awaiting payment in 30, 60 (or longer) days, they can sell that invoice to an investor at a discount for cash upfront. When the invoice is paid off, the investor pockets the difference.
Up until now, invoice factoring has always been a B2B solution with large cheque sizes and long payment terms.
With their partnership, ModulTrade and Konkrete are bringing this solution to the B2C channel, for payments typically sub $1,000, both in fiat and cryptocurrencies. Receivables will be tokenized and sold to investors on Factorium’s marketplace.
2. Better terms, regardless payment takes place in fiat or crypto
Not having to pay upfront is a big eliminator of friction for buyers on the MT Market, resulting in an even easier purchasing process. Buyers will also be able to choose whether to make payments in fiat or cryptocurrencies.
The MT Wallet, ModulTrade’s native e-wallet, supports both traditional cryptocurrencies and stablecoins, which enable users to hedge from FX risk while enjoying the benefits of crypto tokens, like greater security and privacy. In addition, payments with A-EUR (linked to the Euro) and DAI (linked to the USD) are free of charge on the MT Wallet.