TRAXIA - First Decentralized Trade Finance
There are three cycles in the cash flows that are represented in the financial statements. First, before starting a business, the company needs good cash financed by the debtor / shareholder. This initial cash will be used in business organizations (including sources of required employees), investment and operating cash flows.
Second, is capital investment / investment in company property, plant and equipment (eg land, building, computer, furniture & equipment, office equipment, etc.) required to start the company's operations.
Third, when the company builds production facilities, it can now start operations / production. After all production materials have been purchased, the production staff is deployed, the company can begin to produce the product, promote and market the product. The Company then receives a purchase order approved from the customer and then sold / delivered to the customer. After the item is sold, the customer can pay by cash / detail info from usu account requirement. 30, 60, and 90 days. If paid through cash, usu. they are a cash discount or if paid early based on company policy. Or collect all accounts receivable (but maybe some customers may default / may not pay their account - which becomes unbilled, or worst case removed), then back to the company's cash again.
Companies can now pay their debtor / if there is an excess profit from business operations, the Company's Board of Directors (BOD) may declare dividends to their shareholders (cash dividend, stock dividend / dividend property) then repeat the cycle again.
The challenge is first, the starting point of a business that finances or sources of funds. According to International Finance Corporation of World Bank Group, 90% of global business / business accounts for Small and Medium Enterprises (SMEs). The current credit gap is estimated at USD 1.2 trillion (for formal SMEs); while the total credit gap is estimated at USD 2.6 trillion (for formal and informal SMEs). You can see an overview from the World Bank website as summarized below.
Global regulators, governments, banks, nonprofit organizations, businesses, investors and other stakeholders work together to overcome these obstacles and maximize global economic growth. According to the World Economic Outlook, the global economy is forecast to grow 3.9% in 2018 and 2019.
Another challenge in the cash flow cycle above is the collection of accounts receivable. For a business to maintain long-term stability and profitability, it requires cash. There are many methods for collecting accounts, such as hiring a collection agency, factoring accounts, but this is not enough to handle floating accounts (worst if removed) from the company. As they say, "money is king".
Do not worry anymore (concerns of SMEs / any business affairs), because Traxia is here to resolve this issue. The Traxia solution became the first decentralized commerce finance ecosystem using blockchain technology; invoices are converted into smart contracts (are binding agreements that are digitally written / encoded in comparison with traditional written agreements on paper) and are traded as short-term assets (meaning to be liquid and easily convertible into cash) where sellers and buyers continue to receive and pay in Fiat. For more details, please visit https://www.traxia.co/
TRAXIA is a new crypto project working on Cardano (ADA) blockchain, decentralized, scalable, fully open source and customizable with smart contracts creation.
Traxia is a fintech platform that aims to guarantee liquidity to Small and medium-sized enterprises (SMEs) that have difficult to access at credits.The idea comes out by an evident difficulty of real worlds in which Banks finances only the 7% of short-term assets, extremely useful for the expansion of SMEs. So, how SMEs can access shortly to credits disrupting bank ecosystem?
An SME has to digitalize and upload its invoices (to pay for 60/90/120 days) into the system and let professional investors trade them, transforming invoices into digital assets. Instantly and with the only use of the private key, the SME confirm the invoice accuracy and receive Fiat minus commission.
On the other side, who want to be a technological partner of the project streamlining this process, assure the transaction, getting a commission. Upon the technological partner, there is the liquidity provider like a fund (i.e.), that finances the operation in the first place receiving TMT tokens and then re-sell it in a marketplace to smaller Investors, getting a spread. On the same flat, there are professional investors that go to the market trading invoices (digital assets) trying to get margins.
Total TMT allocation for Token Sale is 60%, other 20% is for Team, 10% for Treasury, 5% Bounty and 5% to Advisors. The Pre-Sale is divided into 4 stages, starting with a discount of 40% and token price of 40% and finishing with no discount at 18th of April. In the first stage the minimum amount to participate is 10 ETH and then, from the 19th of March, the minimum becomes 0,01 ETH. For whom want to participate in the first sale but haven’t 10 ETH, I suggest to visit primablock.com web page and create a pool on Ethereum blockchain. Is possible contribute also with Cardano (ADA) and the cap could be reached during pre-sale, avoiding the public sale.
The 6th of June TMT will hit exchanges Trade.io and Gatecoin with which already there is an agreement.
The token sale system is fully compliant with rules regulation.
Total supply of 1,000,000,000 TMT and hard cap to hit is of 41.4 million dollars, to spend into 64% Loan Warehousing, 11% Business Development & Sales, 15% Smart-Contract Development, 5% Legal and Compliance and 5% Contingency Budget. It’s very important to note that the major amount is going to be spent in Loan Wharehousing for assuring Liquidity Provider activity and so the work of platform.
The project is good structured and well thought, supported by Cardano community through its investment arm Emurgo, winner of Slush Shanghai 2017 Edition prize. The development team, called LiqEase, has a lot of records in launching and executing digital projects successfully for large corporations or independently and with deep knowledge of fintech world. Finally, Miguel Solana from Santander Bank and Mr. Kapron from Citibank, support the project, guaranteeing a long-term investment and big future success.Disclaimer: this is my personal article within my personal opinions so please don’t consider it as a financial advice.
Home Page: https://www.traxia.co/
Telegram Group: https://t.me/traxiafoundation
Official Bitcointalk thread: https://bitcointalk.org/index.php?topic=3019695.new#new
Bounty Bitcointalk thread: https://bitcointalk.org/index.php?topic=3021679.0