Lights on22 Oct 2020 21:31
It’s all become suddenly clearer. I’m beginning to realise that true sale inventory monetisation has been around for many years and is a proven model. In the US it’s more commonly known as Commodity Repo Transactions. Contracts are complex because the purchaser (Banks / Financers) become the owners of the inventory with all the legalities that that may entail. The case of Mercuria v Citigroup highlighted this where quantities of aluminium and copper stored in warehouses in China were fraudulently over counted. This resulted in a us$270m legal battle concluded in 2015 to determine whether contracts on either side had been fulfilled.
As I see it, the complexity of the contract and security of inventory control needed for this type of finance have been one of the major blocks to this being more widely used.
I am realising that it’s technology that’s the key to unlock this and that NOW is the time.
It is NOW that the widespread acceptance and use of computer technology with high speed internet has become integrated into the almost every part of any reasonable size organisation. It is NOW that computer systems are able to offer high security transactions and traceability.
The platform used by supply@me using blockchain technology offers the secure and legal mechanisms to unlock the true potential of this form of financing. With lessons already learnt, contracts can be made more secure and insured for both parties and the technology can smooth the monetisation cycle of a company’s inventory with maximum security.
What timing, ahead of any competition with blockchain technology used for this purpose. What a sell to the worlds businesses with technology and financing in place, what a potential!
The idea was there already, it’s been proved, tried, tested and ironed. Everything is falling into place with regards to banks, financers and investors. It’s the platform that offers the key to unlock this for the world and everything is falling into place.
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