On the one hand, there are companies that want to anticipate receivables to balance their cash flow and promote projects, and on the other, there are many people who want to invest in stable medium and long-term investments with pre-defined yields. Is it possible to reconcile such different worlds?
Yes, and the answer lies in the receivables tokens!
Nowadays, a company needs to go through the banking system to negotiate the anticipation of future sales revenues – credit cards, boletos – which has high discount, rules, high cost, and ties the company to a form of bank debt.
On the other hand, conservative or moderate investors – and even the daring ones, to mix their investment portfolios – seek applications with low risk, but run into bureaucracy, minimum values, and costs.
Tokenizing receivables is an opportunity to provide a solid, low-risk investment and advance cash to support company growth – and all with greater agility and liquidity.
How can your company generate extra revenue by attracting investors?
BLOCKBR, a web 3.0 native company, will talk about anticipating receivables with tokens offering safe and quality investment!
WHAT IS THE ANTICIPATION OF RECEIVABLES
The advance on receivables, as it is also called, is the financial operation in which the company, for different reasons, wishes to anticipate future client receivables, which are taken for granted because they are already registered in the accounts receivable.
In the traditional market, it is like a loan with receivables as collateral and receiving a discounted value – a lower value, because it considers the spread that the bank or finance company intends to earn by lending and taking receivables as collateral and some risk of default.
By offering receivables with tokens, the company can raise funds quickly and address the situations we commented on earlier.
- Prepayment of large expenses;
- Cash rebalancing after unexpected high expenses;
- Capitalization of projects (new branch, equipment renewal, etc).
In tokenization, there is no bank or financier; it becomes a sale of future capital as an investment product.
HOW THE RECEIVABLES TOKENS WORK
In practice, the anticipated receivable token is a digital asset that works very simply, because it brings together the concepts of future revenue trading that we know in the banking system with tokenization.
Basically the step-by-step of the advance revenue token works like this:
- The company that owns the receivable and the asset tokenizer define the tokenization plan, which has the same steps as for tokenizing other assets;
- Among the specific activities is the study of the composition of the receivables portfolio to define the disaggregated value – with the discount that will make the operation attractive in the long term;
- All the conditions of the offer – discounted value, term, yield, and other conditions – are entered into the smart contract, the digital file that controls the negotiations and revenue payments on the blockchain;
- Interested people buy quotas – the amount of the receivable is fractioned to increase the investor base and accelerate liquidity;
- Investors will receive, in their digital portfolios, the agreed-upon revenues.
ADVANTAGES OF RECEIVABLES TOKENS FOR ISSUERS
The receivables token provides a number of important benefits for the companies that offer this financial digital asset on the market. Here are some of them.
IMMEDIATE LIQUIDITY OF FUTURE VALUES
The company that owns the receivables can turn this potential future revenue into immediate cash at a discount that pays off when compared to the amounts to be received in months or years and the impact of inflation on them.
In addition, one of the main characteristics of the tokenization of receivables is the agility to sell the tokens because of the break-up of the amount in small fractions, which becomes attractive for those who want to start investing little in tokens.
ANTICIPATION OF DEBTS AND INVESTMENTS
Yes, with more cash on hand, the company can anticipate important growth and improvement projects, but it can also get a discount on the anticipation of debts with a high financial cost and make important savings.
LOWER FINANCIAL COST
In traditional receivables anticipation, there are payment agents and escrow services, which make the operation more expensive and reduce the margin. With the receivable token, we have decentralization, everything is negotiated directly between the owner of the capital and the investors, reducing the financial cost.
TaaS: Everything you need to know about token-as-a-service!
FINANCIAL PREDICTABILITY
By anticipating receivables with tokens, besides having immediate capital for its commitments and short-term projects, the company exchanges for a scheduled and fixed-value disbursement. With this, it can forecast payments more accurately.
GAINS FROM SHORT-TERM APPLICATIONS
This is an interesting possibility for companies that want to remunerate the future capital instead of keeping it idle and exposed to inflation: remunerate the investors in the receivables tokens and invest all the funds raised in financial products with higher profitability, earning the difference.
ADVANTAGES OF RECEIVABLES TOKENS FOR INVESTORS
Receivables anticipation tokens represent an important opportunity for those who want to get started in the world of cryptoactive and also meet the needs of more experienced crypto investors. Here are some benefits of the receivable token.
EARNING PREDICTABILITY
Without a doubt, this is an important advantage, especially for those who are starting out in the world of crypto investments or have a conservative profile, because the anticipated receivables tokens guarantee pre-fixed and scheduled income according to the rules of the smart contract.
PORTFOLIO DIVERSIFICATION
Not only conservative investors benefit from tokenized receivables; moderate profiles and even the bold investor can use them to diversify the portfolio with a stable product that will balance the overall result in the medium and long term in case of losses with other investments.
LOW RISK AND VOLATILITY ASSET
Every investment has its risk, after all the market is far from being an exact science. On the other hand, receivables in tokens are low-risk assets because it requires the commitment of the future amount in the tokenization process.
Moreover, it is an asset with low volatility, since it is backed by revenues that are taken for granted – there is a calculation prior to the distribution of the tokens that is the default estimate so that the offering is based on the safest scenario for investors.
BLOCKBR Digital Assets
is a web 3.0 native fintech that brings together technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.
The supply of physical assets and tokenized financial assets, both current and new, is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
