This is a very common routine for the great majority of Brazilian companies: in order to serve their consumers, they sell products and services on credit. That is, dividing the total payment into smaller installments over a given period. This allows an item of greater value to be purchased by those who do not have the necessary resources at that time.
The point is that, in these cases, it is the company itself that runs the risk of financial complications and not having cash for its own structure. The anticipation of receivables was one of the solutions found, but today there is a new possibility, much safer and more profitable: the tokenizationof receivables. This concept represents the future of financial operations in the country.
Before exploring the effects of this practice, it is important to recall its causes. In an economic proposition, receivables are nothing more than the famous accounts receivable on the balance sheet – such as the amounts still to be paid by consumers on a forward purchase.
Given the difficulty that many companies have in equating the cash on hand with these amounts due, the anticipation of receivables arose . A form of loan that the company takes out to cover this total amount to be received. On top of this, it pays the lender with interest – which makes it an important investment asset.
The point is that, when misused, this resource can jeopardize the survival of the business. After all, by anticipating the receipt of these bills, the company is giving up the values in the future – the money paid by the consumer goes directly to the institution that lent the money; an initiative that can unbalance the financial planning in the medium and long term.
Moreover, this is not such a simple procedure, since it involves approving and sending documents (such as invoices) to banks, brokers or fintechs that perform the service. In short: as digital as the process is, especially with financial startups, it requires a certain amount of bureaucracy that, in the end, may not keep up with the company’s rush to get that value.
It is at this point that tokens emerge as the market’s big bets, offering agility, security, and profitability in the process. The premise is simple: instead of relying on the support of a financial institution that anticipates the receivables, the organization can simply transform the receivable asset into tokens which can be traded on the primary market (in an environment controlled by the company itself) and even the secondary market (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 a remuneration of interest or even thinking about the possible appreciation that this asset, now digital, may have in the future. This guarantees not only greater speed, but also savings, since the interest rates to be paid can 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.
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 made possible by blockchain technology, which ensures transaction security through blockchain cryptography, and by the
smart contracts
– documents that govern that transaction. In the case of receivables anticipation, the token serves as both the regulator of the transaction by carrying the established rules and the currency of exchange for those who are investing.
It is a global trend because it can unlock and unbureaucratize different opportunities that previously depended on weeks (or months) of negotiation. The automotive industry, real estate, and mining are examples of areas that have identified the concept as a way to stimulate new revenues. Not surprisingly, the global tokenization market is expected to be $10.75 billion by 2030, with an average annual growth rate of 18.9% by then, according to Polaris Market Research.
Today, tokens are already consolidating themselves 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 ample room for growth, enabling the resources to be used to their fullest extent. A tokenizationis just beginning its journey into the corporate environment, but it already opens up a whole world of possibilities for everyone.
Source: Cointimes
