This is a very common routine for the vast majority of companies in Latin America: to serve their consumers, they sell products and services on installments. That is, they divide the total payment into smaller installments during a certain period. This allows an item of higher value to be purchased by those who do not have the necessary resources at the time.
The point is that, in these cases, it is the company itself that runs the risk of financial complications and of not having cash for its own structure. The anticipation of accounts receivable was one of the solutions found, but today there is a new possibility, much more secure and profitable: the tokenization of accounts receivable. This concept represents the future of financial operations in the continent.
For the expert Cássio Krupinsk, CEO of BlockBR, before exploring the effects of this practice, it is important to remember its causes. In an economic proposal, accounts receivable are nothing more than the famous accounts receivable on the balance sheetsuch as the amounts that consumers will still pay in a forward purchase.
“Given the difficulty that many companies have to equate the cash in hand with these amounts owed, the anticipation of accounts receivable arose. A form of loan that the company takes to cover this total amount to be received. It also remunerates those who lent that money with interest, which makes this modality an important investment asset.“, said.
According to Krupinsk, the point is that, when misused, this resource can jeopardize the survival of the business. After all, by anticipating receipt of these bills, the company is foregoing amounts in the future: the money paid by the consumer goes directly to the institution that lent the money; initiative that can unbalance financial planning in the medium and long term.
“In addition, it is not such a simple procedure, since it involves the approval and sending of documents (such as invoices) to the banks, brokerage houses or fintechs that perform the service. In short: as digital as the process is, especially with financial startups, it requires some bureaucracy that, in the end, may not keep pace with the company’s rush to have this value.“, he claimed.
According to the expert, It is at this point that the tokens emerge as great bets in the market, offering agility, security and profitability. in the process. The premise is simple: instead of having the support of a financial institution that anticipates accounts receivable, the organization can simply transform the receivable asset into tokens that can be traded in the primary market (in an environment controlled by the company itself) and even secondary (on digital exchanges).
“Thus, it is not the bank or the fintech that “lends” the money that the company has to receive from its clients, but the users themselves who can buy “small parts” of this debt in exchange for interest payments or even thinking about the possible appreciation that this asset, now digital, may have in the future. This guarantees not only more speed, but also savings, since the interest rates to be paid may be more advantageous than those practiced by traditional financial institutions. It is a mutual relationship: the company gets the money and the person who owns the token gets the return on investment”, he pointed.
This is the basis of the process known as tokenization, which seeks to transform physical assets, such as goods and services, into digital modalities that can be traded and valued in the online environment. This is possible thanks to blockchain technology, which guarantees the security of transactions thanks to the blockchain, and smart contracts, documents that govern this operation. In the case of prepayment of accounts receivable, the token serves at the same time as a regulator of transactions by carrying the established rules and the currency of exchange for those who are investing.
It is a global trend because it manages to unlock and debureaucratize different opportunities that previously depended on weeks (or months) of negotiation. Automotive, real estate and mining are examples of areas that have identified the concept as a way to stimulate new revenue. It is not surprising, the global tokenization market is expected to move USD 10.75 billion in 2030, with an average annual growth of 18.9% until thenaccording to Polaris Market Research.
“Currently, the tokens are already consolidated as interesting alternatives for different sectors to improve their processes and develop new solutions for their clients and partners. However, as can be seen, there is still a wide margin for growth, which allows making the most of resources. Accounts receivable tokenization is just beginning its journey in the corporate environment, but it already opens up a whole world of possibilities for everyone.”, concluded Krupinsk.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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