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Invoice Tokenization
Get instant liquidity from outstanding invoices
Invoice Financing Through Tokenization
Tokenize outstanding invoices to access immediate working capital. Investors purchase invoice tokens and receive payment upon invoice settlement.
Process
1
Invoice Verification
Validate authenticity, debtor creditworthiness, and payment history.
2
Tokenization
Convert invoice receivables into tradeable tokens representing fractional invoice ownership.
3
Investor Purchase & Redemption
Investors buy tokens at discount; receive face value + interest upon invoice payment.
Regulatory Aspects (Nigeria)
- • Compliant with Central Bank guidelines on invoice financing
- • Require debtor consent and notification
- • Adhere to FX regulations if cross-border invoices involved
- • Tax treatment: interest income taxable to investors
Benefits
- ✓ Immediate cash flow vs. net-30/60/90 payment terms
- ✓ No debt added to balance sheet
- ✓ Lower cost than traditional factoring
- ✓ Investor attractive returns (8-15% typical)
Risks
- ✗ Debtor default risk
- ✗ Disputed invoice claims
- ✗ Regulatory changes in invoice financing
- ✗ Smart contract token redemption risk