Invoice Payments

Credible offers overcollateralized credit lines, enabling businesses to access liquidity for invoice payments, avoid late fees, and maintain cash flow with crypto-backed security.

Invoice payments are a common source of cash flow disruptions for businesses, particularly small and medium-sized enterprises (SMEs). When businesses issue invoices, there is often a gap between when the invoice is due and when the payment is received. This creates a cash flow issue, making it difficult to pay suppliers, contractors, or cover operating expenses. Credible’s overcollateralized credit lines solve this problem by providing immediate access to liquidity, secured by digital assets, to businesses awaiting invoice payments.

How It Works:

• Collateralization: Businesses provide overcollateralized crypto assets (such as Bitcoin, Ethereum, or other tokens) to back the credit line. This ensures that the lender is protected against fluctuations in crypto prices and minimizes risk.

• Access to Credit: Once collateral is provided, the business receives access to a credit line, which is disbursed in stablecoins such as USDC, USDT, or DAI. These stablecoins are pegged to the value of a fiat currency (like the US dollar), making them stable and predictable for business use.

• Invoice Payment: The business can use the stablecoins to pay invoices to suppliers, contractors, or other parties. This allows the business to settle obligations promptly, even if customer payments are delayed.

• Repayment: Once the business receives payments for the outstanding invoices, the credit line is repaid with stablecoins. Any fluctuations in the value of the collateral are monitored and managed by Credible's OracleAI risk management system, ensuring that the loan remains secure.

Benefits:

• Cash Flow Management: Access to working capital on-demand without waiting for invoice payments to arrive.

• No Late Payment Penalties: Helps businesses avoid penalties, maintain vendor relationships, and ensure operational continuity.

• Crypto-backed Security: Provides access to capital without the need for traditional credit checks, with collateralization via crypto assets.