TRAXIA is an innovative look at classical factoring

TRAXIA is an innovative look at classical factoring as a tool for quick lending to small and medium-sized enterprises using the capabilities of the blockchain.

Note that classical factoring is currently not a fast enough and affordable mechanism for operational financing by as much as it would like. Since these activities require licenses from central banks, and the factors themselves (intermediaries) - usually banks - lay their risks and commissions in significant amounts of discount. And based on the fact that recourse to factoring, mainly small and medium enterprises - those that lack of working capital - the price factor the commission and speed its decision are often decisive, and even fatal for the future of such enterprises. Here are a few facts:

• daily in world trade there are about $ 43 trillion of total receivables and payables of counterparties. Banks, as well as other financial intermediaries, lend only $ 3 trillion of them, that is, the opportunities of the factoring market are closed by no more than 7% (Kemper, 2016). This gap is used by large multinational companies - those who do not experience a lack of funds, knocking out small and medium-sized enterprises (SMEs) from the market or forcing them to accept pre-unfavorable terms of contracts.
• Asian Development Bank in 2016 noted that daily Asian companies - participants in international trade - are missing about $ 1.6 trillion.
• The International Chamber of Commerce in its report calls short-term lending the "oil" of world trade "(International Chamber of Commerce, 2017).

According to the estimates of the International Monetary Fund, the existing gap between the needs and opportunities for SME lending can be explained by several reasons:

1. Decrease of trust between banks, caused by a constant decline in correspondent banking relations. That, in turn, leads to the fragility of local and, later on the chain of interaction - national and transnational banking systems. Unfortunately, this fragility is not compensated by the increase in funding.
2. Low transparency of data on participants in world trade and counterparties of factoring transactions due to the lack of reliable information sources.
3. Unification of world capital, including banking. What entails the slowness of the large structures being created and the lack of visibility of the problems of small and medium-sized enterprises at the local level. And this, among other things, prevents the receipt of accurate and objective information "on the ground".
4. The problem of limited cash liquidity and high commission for attracting credit resources, as a result of which many banks refuse factoring operations.
5. Bureaucracy. Despite the fact that we live in a high-tech world, banks and other financial organizations are still exchanging paper documents, and their huge number needs to be standardized, created and stored. Naturally, the speed of information exchange with this approach leaves much to be desired.
6. SMEs produce half of the world's GDP and create jobs for two-thirds of the world's workforce, the only source of credit for such enterprises are local banks. Which, in turn, greatly lose their appetite for SME lending after every wave of global financial crises.
   [** Traxia **] - a platform that operates on the basis of the already operating blockchain Cardano ADA - decentralized, scalable and fully open source, which uses smart contracts, is developed and maintained by a team of researchers and engineers with all over the world and, most importantly, is really working and growing!
   

In a nutshell about Cardano ADA. The ideologist and the main developer of the project are Charles Hoskinson - a person known and authoritative in the crypto-currency world. In the past, one of the leading specialists in the blockchain Ethereum, he left the project and created his own, the success of which is better to comment on the figures: at the time of writing this article, Cardano took the 6th place in the top 20 global crypto-currencies with a total capitalization of over $ 9 billion.
Cardano was conceived as a technology for the development of decentralized economies and an instrument for democratization of the world financial markets. It is based on three independent structures:

1. Cardano Foundation with the mission of standardization, protection and promotion of the project
2. IOHK is an engineering company responsible for the technical aspects of the construction of the Cardano blockchain.
3. Emurgo is engaged in venture investment in the ecosystem of Cardano, and its mission is to integrate programs into the Cardano ADA platform.
   What in the light of the above is ** TRAXIA ? [ Traxia Foundation **] (http://traxia.co/) is a decentralized B2B financing platform for SMEs working through smart contracts. The smart contract itself is in this case a trading obligation. TRAXIA, creating a transparent supply chain, will be a reliable source, the basis for exchanging information necessary for transactions between sellers and buyers. At the same time, the technology will retain complete confidentiality and the impossibility of information leakage outside the parties to the transaction. In the ecosystem of Traxia, smart contracts are concluded, containing information about all the details of the transaction. The participants of the platform will have access to integrated management and payment programs, for example: ERP - resource planning system, or international payment networks SWIFT, FIX, ACH, etc.
   How it works? The project participants - SMEs - digitize and upload their accounts. Other participants - professional investors and traders - sell or buy them, turning digital assets into fiat ones, minus their commission.
   There are two types of participation in the Traxia system:
   a) use of the ecosystem through issuance and listing;
   b) the payment for each transaction, published in Traxia (TMT) participant tokens, taking into account the conversion factor at the time of the listing service.

ICO

The Traxia team has released 1 billion TMT token for the development of the project. Earlier it was planned that the price of the token would be $ 0.15, but later, due to involvement in the Quark Finance project, the price was reduced to 1TMT = $ 0.055, and the hard top was reduced from $ 41.4 million to $ 15.1 million.
For sale, investors were offered 40% (400,000,000) of TMT tokens, 20% of tokens provided for liquidity maintenance, 20% of tokens - to reward the development team of Traxia.
Tokens are sold for BTC, ETH and ADA. There is a bonus program for early buyers: until 30.04.2018 they can be purchased at a discount of 10%.
TMT tokens will be offered until June 06, 2018 - provided that all tokens are not sold before.
More detailed information about the project, its team and ICO conditions can be found on the project's resources:
Website
Token sale
White paper
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Author: refreshka