InventoryClub is the latest company to deploy blockchain technology for business finance.
The company announced news on Thursday (Jan. 25) that it’s launching as, what it claims to be, the first inventory finance marketplace in the U.K., enabling companies to submit inventory for which they need financing. InventoryClub then curates that financing, the company explained.
By deploying blockchain to facilitate that financing, the company also noted that companies whose proposals for inventory financing are accepted see their proposals added to the marketplace, and members on the platform can use VNT tokens to purchase them. InventoryClub deploys smart contracts, dubbed Inventory Finance Agreements, to facilitate the financial agreements.
“We understand the challenges that merchants face — especially in the more underdeveloped countries of the world — and our plan is to tackle these challenges head-on,” said Terry Igharoro, founder of InventoryClub. “Through our innovative marketplace, we make it possible for merchants that want to trade online to get access to micro-financing opportunities in a secure fashion; what’s more, our business model supports and promotes investment into the Commonwealth of Nations from its diaspora citizens.”
The Commonwealth of Nations represents 52 member states around the globe that were once members of the British Empire.
“We also aim to make it much easier for citizens of the Commonwealth to buy online from other Commonwealth merchants and reap the benefits of the 19 percent intra-trade savings,” the executive continued. “In this post-Brexit era, we believe the Commonwealth can become a valuable marketplace for U.K. exports with a plethora of growth potential, provided the groundwork is completed to build out the infrastructure ... and our solution will contribute to the building of such an infrastructure.”
According to research from the Council of Supply Chain Management Professionals, the cost of inventory financing has increased by more than 5.1 percent year over year, while the cost of inventory rose 7.4 percent.