Some trends in recent years, from environment tutelage to smart working, proved how necessary is digitising billing and invoicing. This process is strongly encouraged by governments, because of the consequentially easy tax management. Obviously, e-billing with Blockchain comes into play when concerns about security, accessibility, and fraud prevention arise.
For a few, valid reasons: every record is immutable: once an invoice is issued, any kind of change is recorded, too, and can’t be undone. Not only that: invoices are stored on a public blockchain, but access authorisations can still be controlled, and it is possible to limit them or allow multiple users or user groups to access.
All this means more transparency, more control, and no need for intermediaries, which leads to more trust in payment processing.
Advantages of e-billing with Blockchain in detail
This distributed ledger technology is just perfect for transaction monitoring and reconciliation. Basically, all documents are recorded on a blockchain, together with the history of all the alterations made on them, including details on who made them.
Blocks are protected with cryptography, but transactions can be seen by all authorised people, from you to national tax agencies.
If smart contracts are in place, payments can be automated, as well as invoices, with an enormous amount of time saved.
Compared to traditional payment methods, which are based on paper, with no chance of carrying out an automated audit, where bureaucracy and intermediaries play by their own rules, e-billing with Blockchain is a real revolution. Debtors will no longer be able to delay payments.
Invoice financing with Blockchain: the case of Finturi
Based in the Netherlands, the start-up Finturi connects businesses looking to borrow money with financial institutions with the method of invoice financing.
Invoice financing is a way to borrow money based on pending invoices. A lot of companies struggle to get their invoices paid on time, and invoice financing helps them to keep good cash flow and make payments on time.
Although it seems very convenient, this process requires an onboarding procedure, KYC checks, and authorisations from a central authority.
The solution proposed by Finturi rotates around Blockchain and its features: the whole process is automated from onboarding to payment, lowering cost and time, which means a great advantage for those who have applied for invoice financing, as they can get the sum they need very quickly.
Financial institutions also have their return: the platform provided by Finturi helps them with the diversification of their investments, as they can invest in a couple of clicks, view their current situation at a glance, and get a return in a short period of time.
Will Blockchain e-billing be implemented soon?
There are a couple of facts to take into account. First of all, because digitising the entire accounting department of a business is always an important investment, and not all businesses can afford it, especially small enterprises.
There is also the Blockchain factor: many businesses still refrain from implementing it for various reasons, so we think the timeline is still very wide, however, if you are an entrepreneur, you should know that it is an investment worth doing!
If you are interested, just contact us!