Payblok Project Introduction
Small and medium scale businesses have always been the backbone of the world's economy, be it a developed, or a developing country, the small and medium scale businesses usually account for more than half of the annual GDP.
World governments recognizes the role that small and mid-sized businesses play in the growth of their economies and take measures to help them but this has proven ineffective, because the best way to really help SMBs is by helping them to maintain the cash flow.
The most obvious way to achieve this is through credit loans from banks but the banks are largely reluctant to give loans to small and mid-sized businesses, posing a big problem. However, there exist other types of problems encountered by small and mid-sized businesses. A major problem these businesses faces is lengthy payments of credit terms on product sales and its impact on their business.
In this piece I will be introducing a blockchain based project that has been created to solve the credit payment problems of small and mid-sized businesses, amongst other benefits. This decentralized platform is called PAYBLOK. In order to properly introduce payblok, I have to first introduce the InstaSupply company and platform.
InstaSupply
InstaSupply is an existing company created in the year 2014 to support SMBs (Small and Mid-sized Businesses) by creating a platform that will capture, digitize and automate all the interactions that proceed payments. This company is a big one that is already being used by over 2000 companies monthly and manages transactions of over $60 million yearly.
While InstaSupply already provides the businesses using its platform with key features like ordering, delivering, accounting among others, it recognizes the problems of lengthy credit payments that most of these businesses encounter and has moved to create a solution for this problem. This solution will come in the form of time cryptoasset called PayBlok.
PayBlok
Payblok is decentralized platform based on the Blockchain and built with cryptographic technology, in order to incentivize business to business payments to be made within the InstaSupply platform.
The Existing Problem
The problems of late credit payments can be attributed to at least one, a combination of some or all of the following factors:
- Intentional delay of payments
- The long processing cycle from purchase orders to payment stage after delivery.
- Inability of SMBs to access credit loans
In an ideal setting; from the moment a buyer makes a purchase order, the money required to fulfill the payment for that purchase order should already be credited into its purchase account. This money represents a deficit already existing in the supplier's account from its purchase of the product from the manufacturer. On the delivery and verification of the purchased products to the buyer, the supplier's account should be credited with the money for the fulfilled order.
The problems are the situation is not always perfect. The process is often a very lengthy one and since most of the SMBs operate on a minimal budget and lack bank loans. These buyers often may have committed part of the purchase funds to other business costs, leading to their inability to make full payments of delivery and also may intentionally take his time before making the complete payment.
According to the PayBlok project whitepaper, "47% of businesses are paid late with around 30% of SMB reporting late payments as a major issue". More in-depth explanation of this problem can be found in the project's whitepaper.
The PayBlok Solution
From the introduction of InstaSupply above, It was mentioned that the InstaSupply platform already allows businesses to create orders, track deliveries, match invoice orders and a robust accounting interface, however like many other similar platforms there is an absence of a payment system and buyers are required to make their purchase outside the platform and then manually input the payment details into the system.
This system of things is time-consuming, requires a large amount of human effort, is susceptible to human error and fraud, and is inefficient.
InstaSupply will remedy this problem by creating an automated decentralized platform which will be built on the Ethereum Blockchain and will use the PayBlok utility tokens as its primary means of value exchange.
PayBlok is a bring the much-needed automation which will reduce the human input by 90% (according to whitepaper), thus eliminating human error, the possibility of fraud, and ensuring the payment of the suppliers comes quicker and more accurately.
PayBlok token allows the InstaSupply platform to provide this solution through 3 major products:
- Integrated Payment Solution
- Supply Chain Financing
- Asset based Lending
Conclusion
PayBlok is a great innovation for an existing platform which will solve the various payment problems encountered by SMBs. For more information kindly read the official whitepaper.
Official Contact
Website: https://payblok.instasupply.com/
Whitepaper: https://assets.ctfassets.net/5vuk877t9hxd/3NAfrZaazmEk6emsaikqiW/87fb62e129789d978720d85d56c49e0e/payblok_whitepaper.pdf
Telegram: https://t.me/joinchat/HZSTLA9rcKJJZKXUHlHkfA
Connect with me on bitcointalk here>>
My Bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=1556229
Bounty0x Username: adekogbe
If you like my article kindly Upvote, drop your comment or question in the section below.
Thank you.