Frequently Asked Questions
Every business has their own terms of payments from buyers and their suppliers. Usually there is a gap between when a business needs to pay its suppliers and when a business gets paid from the buyer. A business therefore needs money to bridge this gap. That is where invoice financing comes into play.
The following parties are usually involved in the traditional business model of invoice financing
- Supplier – The customer who supplies the goods and is usually the one who needs money
- Buyer- The party who purchases goods from the supplier and then has an obligation to pay the supplier money as per pre-defined terms
- Banks/Financial Institutions – These give money to the supplier basis the invoice generated on buyer after doing their own credit assessments on the supplier and buyer
- Insurance Companies- They are used by banks to further ensure that in case a buyer is not able to pay on time the insurer pays off the outstanding against the invoice.
- Shipping Companies – They are used to confirm if the invoice has been shipped or not
Yes projects native coin TRADE will be an ERC- 20 Token.
$TRADE is the native coin of Polytrade protocol. Holding a $TRADE enables:
- a) Token holders
- Governance: Allows validated holders to influence protocols decisions
- Staking Rewards: Stake $TRADE to get rewarded
- b) Borrowers: Receive reduced interest rates for staked and payment done via TRADE tokens
- c) Buyers: Receive discounts on invoices for settlements done on Polytrade platform
- d) Service Providers: Receive TRADE for participating in trade finance economy by performing key tasks of KYC, document validation, credit evaluation and more.