The Problem

Around the world there’s something in the region of $43 trillion worth of accounts receivable or accounts payable locked up on the books of businesses. This value of $43 Trillion is a daily average and banks currently only finance around $3 trillion (7%) of this and most of this financial assistance is given to large corporations and multinational companies. There’s no help provided for the little man, who continues to struggle as larger corporations get a helping hand and, therefore, get richer. Even with all the tools available in todays tech savvy society we still haven’t figured out a true solution to this problem.

The Current Solution

Currently, Small and Medium Enterprises (SME) have to wait for the buyer to receive the goods and then they for the buyer to pay the account. However, the standard grace period for a buyer to pay an account is 60 days. So that’s over two months (including delivery time) for which that capital is unavailable to the seller, this can stunt the growth of good business ideas and can also mean missed business opportunities, which can often be crucial for small businesses.
A seller of goods can use a method called “factoring” to free up this liquidity. They sell their credit-worthy accounts receivables and in turn receive immediate cash. This comes at a loss because the creditor assumes the responsibility of the account, that means that if your buyer doesn’t pay they’re the ones left to fill the hole.
This factoring is currently an underused yet a growing business, with commercial factoring, not bank-based factoring, beginning to emerge around the world. The rise of the FinTech industry means that these non-bank players and actors can get in on the game.

The New Revolution Solution - Traxia

Traxia is going to take these assets, decentralise them and securitise (tokenise) them onto the blockchain. The buyers and sellers both use their private keys to sign the transaction into a smart contract on the blockchain along with any relevant information e.g. any conditions of the contract, how much is owed and the final due date.
The value of the contract is then tokenised into TMT (the token used in the Traxia ecosystem) and it is then transferred to a market place where investors can purchase all or a portion of the security, and the money made from the sale of the tokens is set to the seller. Once the time limit for the smart contract hits the buyer buys the tokens back from the investor, thus completing the cycle.
This process, as well as being more transparent and secure -with the use of smart contracts and blockchain technology- allows non-financial institutions and individual investors access to these tokenised securities increasing the amount of money available in this financial niche and also increasing the likelihood that financing will be made available for companies and business that elect to use this service.

The Future’s Brighter

For too long the advantages and tools available to big businesses and corporations have far outweighed those available for smaller and medium sized businesses. The Traxia ecosystem looks to lift these smaller businesses up onto a level playing field with larger business in terms of available financial liquidity.
By using the Traxia ecosystem suppliers and buyers will be able to free up funds and a lower cost allowing for more financial flexibility and, as a result, more growth and sales for suppliers.
If you want to invest their pre-sale is now live with a 10% discount on token price until the 30th of April!

Traxia website: https://www.traxia.co/
Official Telegram Channel: @TraxiaFoundation
ANN thread: https://bitcointalk.org/index.php?topic=3019695.new#new
Pre-sale/ICO Bounty thread: https://bitcointalk.org/index.php?topic=3021679.0