Factury is a smart invoice payment system based on blockchain technology

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Country: UKFACTURY
Year: 2015

Concept

  • Factury provides a B2B invoice payment system based on blockchain technology with API support for authorized third parties including banks, factoring and insurance companies, and debt collection agencies
  • The smart contracts solution fully automates the invoice issue-to-settlement process to ensure timely payments
  • The immutable characteristic of data storage on blockchain technology allows invoice information to be stored on independent servers across the world, thus the entered information cannot be deleted
  • Interoperability: instead of replacing companies’  ERP systems, Factury’s payment system works with and connects different ERP systems, thus companies do not need to change their front end systems

Consumer Benefits

  • Secure: the immutable characteristic of blockchain technology makes it impossible for invoice information to be deleted, thus ensuring safety and reducing fraud risks related to invoice verification mechnisms throughout the invoice lifecycle
  • Less costs: the smart contract functionality reduces time spent on account receivables and account payables, thus cutting the labor intensive and paper based administrative costs
  • Enhance working capital management: the automotive smart contract functionality helps companies get paid for invoices on their own terms and eliminates late invoice payments independently from their clients

How to use

  1. Invoice will be reconciled in Factury’s payment system in real time
  2. The accepted invoices then automatically become payment orders
  3. Factury also provides an automatic roadmap algorithm for payment order modification in case of factoring, insurance or late payments

Illustration

  • How does Factury work:

factury-illustration1