“How can Factoring and Reverse Factoring help companies to grow their business”
We recently posted an article on Traxia to identify what it was, and how it can benefit Business owners. We have received an amazing response that got us more excited about this particular token, so the intent is quite simple – let’s give you what you want, and what we are excited to write about.
With this in mind, how good is Traxia? This isn’t a token that meets its own needs, this is a token that assists the most crucial market for employment – the SME space (Small to Medium Enterprise). They are by far the highest employment companies and Traxia has found a way to be of value.
It is clear that the biggest hurdle facing Business owners is cash flow. Too often they are rejected by Banks for loans given they want to see how much a Business will grow in the next fiscal year. No growth, no loan, no Cash flow! This is where “Factoring” comes into play. Factoring allows the Business to “sell” their invoices to a third party at a discount. Better to have something rather than nothing yeah? This improves cash flow for the Business allowing its operating rhythm’s to continue. Let’s face it, if a Business has increased cash flow, anything is possible.
Reverse factoring on the other hand, is when a supplier wants to finance its receivables. It’s initiated by the customer to help its suppliers finance its receivables more easily and at a discounted rate. This is still very rare, and the take up hasn’t been enormous on this, however, we feel it only a matter of time before this concept takes off.
Blockchain technologies are the way of the future there is no doubt. While there are many negative comments coming out of “major share portfolio” holders, some of these scare tactics may work in the short-term. However, when you look at the benefits of what tokens like Traxia have to offer, how can you not believe this is the way of the future? They may potentially eliminate the need for Banks all together, as instead of companies needing to go to a Bank, cash flow problems are resolved by studious investors looking to become involved in Projects.
New technologies like Traxia, with the help of the Cardano blockchain platform will allow smaller to medium sized Enterprise companies enjoy steady growth with less fees, and a longer lifespan.
The only issue stopping a Business growth is cash flow. Now that Traxia has solved that problem, don’t just think to dominate where you are, dare to dream and go Global!