Unlocking Liquidity by Tokenizing Unpaid Invoices
Bridge the 30-90 day gap. Businesses sell outstanding invoices for early capital, while investors earn competitive APY yields, secured by blockchain smart contracts.
Core Features of Factora
Our protocol replaces manual invoicing processes with secure, decentralized escrow algorithms.
Invoice Tokenization
Convert legal receivables invoices into tokenized smart contract positions, specifying principal amounts, interest yields, and payment timelines.
Liquidity Marketplace
Investors browse registered invoices, evaluate debtor reputations, and supply funds. Smart contracts automatically disburse funds to the business.
Soroban Escrow Pools
Payments are locked in tamper-proof Stellar smart contracts. Repayments distribute principal + yield back to fractional investors automatically.
The Factoring Process
Four simple steps from invoice creation to yield return.
Upload & Tokenize
A business uploads an unpaid invoice PDF, details debtor payment terms, and deploys it.
Marketplace Funding
Investors evaluate metrics and deposit USDC stablecoins into the factoring pool contract.
Instant Cash-out
Once the goal is reached, the escrow automatically triggers and releases funds to the business.
Automatic Repayment
Debtor repays the invoice. Escrow unlocks, and investors claim principal + yield returns.
Frequently Asked Questions
What is Invoice Factoring?
Invoice factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party (investors) at a discount in exchange for immediate cash.
How does Stellar Soroban secure the transactions?
All funds are deposited directly into immutable smart contracts. The business cannot withdraw funds without reaching the funding goal, and investors have cryptographically secured claims on the repayment yield.
What happens if a debtor defaults on payment?
Platform admins review delinquent invoices. Soroban smart contracts manage disputes and allow admins to approve suspension or execute insurance payouts where applicable.