Invoice Factoring
Last updated
Status: 🔨 In Development (Q2 2026)
The core trade finance product enabling invoice tokenization.
Businesses sell their unpaid invoices at a discount for immediate cash. Investors purchase these invoices and collect the full amount when the debtor pays.
Invoice Face Value
$100,000
Payment Terms
Net 60
Discount Rate
5%
Seller Receives
$95,000 (immediate)
Investor Pays
$95,000
Investor Receives
$100,000 (at maturity)
Investor Profit
$5,000
Annualized Yield
~31% APY
Expected yields of 5-10% APY derive from:
Discount Rate
Typically 1-3% per 30 days
Annualization
30-day invoice at 2% discount ≈ 24% APY
Risk Adjustment
Higher-risk debtors command higher discounts
Market Dynamics
Supply/demand affects pricing
Each invoice listing includes:
Debtor Rating
Creditworthiness score (A/B/C/D)
Invoice Age
Days since issuance
Payment Terms
Original net terms (30/60/90)
Seller History
Default rate, volume, tenure
Concentration
% of debtor's payables on platform
Business registration documents
Invoice and proof of delivery
Debtor contact information
Bank statements showing relationship
Minimum face value threshold
Maximum days outstanding
Verified debtor (not on exclusion list)
No existing liens or assignments
Instant Liquidity
Cash in days, not months
No Debt
Asset sale, not a loan
Preserve Credit Lines
Doesn't affect banking relationships
Flexible
Choose which invoices to factor
Real Yields
Backed by commercial cash flows
Short Duration
30-90 day typical maturities
Diversification
Multiple debtors and industries
Transparency
On-chain settlement and tracking
Invoice Factoring Marketplace launches Q2 2026. Join Waitlist →
Last updated