In today’s financial world, Business to Business (B2B) transactions account for much of the higher volume payments. These include payments made from companies to its suppliers and to service providers, and form the bulk portion of a businesses accounting work flow.

A study conducted by BI Intelligence estimated that the B2B payments industry to account for over $18,500 Billion ($18 Trillion) in payments in the year 2016 — This is more than 3 times the size of the Business to Customer industry.

The problem

B2B payments differ significantly from B2C payments which are mostly oriented towards customers in a number of ways — B2B payments are much more complex, require detailed accounting processes and matching, and a key distinction here is to be noted that in majority of B2B transactions, customers do not usually pay upfront. For example, a manufacturer of automobiles who receives supplies from thousands of manufacturing units, will clear the payments only after lengthy accounting and clearance process that involves accounting of tax and often times, complicated cross-border transactions. This delay creates considerable cash flow problems for suppliers and their business activities.

In order to cater to this market, InstaSupply proposes to leverage its existing platform and provide its customers an end-to-end management system for accounting business workflow within one integrated system. InstaSupply is a cloud based business marketplace offering invoice management and spend control management products to over 2300 businesses. The InstaSupply platform currently processes over $60m annually in business payments.

Introducing the PayBlok token

To support the InstaSupply platform, the PayBlok token PBLK will be issued on the Ethereum blockchain using the ECR20 token standard. This token will be utilised exclusively within the InstaSupply platform for integrated payments using InstaSupply’s payment gateway, for supply chain financing and for asset based lending.

Automated Payment Solution

With InstaSupply, the end-to-end supply and payment cycle is managed on one single platform creating an optimised workflow while reducing the need for manual input matching by accounts departments. Using InstaSupply, Business are able to set up intelligent automation rules and customise them to their internal processes, in order to identify existing Purchase Orders (PO) and match them with supplier’s invoices when the supply has been completed. In case the invoice is matched to an existing PO, a smart contract operation is triggered which enables payment to be processed to the supplier.

In case a discrepancy arises between the purchase order and the invoice, the details are then sent for manual reconsideration. The entire process automates a significant portion of the accounting lifecycle and reduces the scope for human error in manual matching of supply with invoices.

Supply Chain Financing

InstaSupply also provides small and medium business organizations with another essential technology advancement — they can obtain supply chain financing in a transparent manner. By recording the entire workflow in an efficient manner aided by blockchain technology, the platform can account for invoices that have been matched by the customers, and the supplier is immediately able to obtain financing as a result of the automated process.

Asset Based Lending simplified by PayBlok

The PayBlok token enables businesses to obtain financing in the form of loans secured by a collateral of the PayBlok token. This enables businesses using the InstaSupply platform to quickly obtain a loan in order to fulfil their obligations, or to hedge their reserves during times of uncertainty in the market. While traditional loans require paperwork, a loan using digital currencies can be obtained quickly thus saving the business both time and overhead costs. As loans are secured using the PayBlok tokens as a collateral, business are able to obtain savings in the form of lower interest costs when compared to an unsecured loan.

For more information on PayBlock, please visit the website and also read the whitepaper.

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• By: ethswagholder