Blockchain platform Factorin went into non-food retail

2020: Using the Factorin Blockchain Platform

On December 4, 2020, Factorin announced that MTS retail chain became its non-food retail client. Now retailer suppliers will be able to receive factoring financing from 39 banks within an hour.

The distributed platform for trade financing Factorin, whose turnover in a year and a half of operation exceeded 90 billion rubles, continues to expand its activities.

The pilot project of the company was held in July 2020. As part of the cooperation, the internal processes of the trading network were rebuilt: now ready-made supply registers are uploaded to the Factorin platform directly from the MTS retail accounting system immediately after receiving goods in stock and processing documents by accounting. This allowed suppliers to get real-time information about which deliveries are ready for financing, and factors - to reduce the time for verification. It was also added the opportunity to select specific supplies that are transferred to factoring financing when forming registries.

{{quote 'author = said General Director of MTS retail chain Sergey Belyakov |

The highly competitive field of mobile retail requires us to build business processes as efficiently as possible at all levels of work with customers and counterparties. It is important for us to provide partners with access to quick financing from different banks. During the pilot project with Factorin, we received positive reviews from suppliers: they all note the speed and simplicity of working with the platform. Therefore, it was decided to scale integration with the service to the entire retail network,}}

Compared to grocery retail, where Factorin collaborates with such major players as the Dixie, Magnet and Victoria networks, the mobile gadget market has its own features. So, the intensity of deliveries in this segment is lower, the number of suppliers is less, but the turnover on transactions is much higher. At the same time, suppliers are similarly faced with cash breaks and a shortage of working capital. Until recently, companies were slow to use factoring to solve these problems, since the financial instrument was associated with complex document management, and cooperation with traditional platform solutions brought additional difficulties to the process.

Traditional platform solutions act as an intermediary between the parties to the transaction. The platforms manage all the data and relationships between the parties, so companies rightly fear that over time such an intermediary may begin to dictate their conditions to the market, as well-known aggregators of taxis, food delivery, marketplaces, etc. Although this may be beneficial to buyers, such a situation may be tragic for suppliers.

With the development of blockchain technologies, the situation has changed. Factorin fully automates the entire process of information exchange between the supplier, the buyer and the factor, but does not participate in the transaction and guarantees that the data will be available exclusively to its participants.

{{quote 'author = noted Andrey McLean, co-founder and CEO of Factorin |

We help companies and their counterparties get the best services on the market from 39 banks and financial companies. Entering this segment is always a significant step. I am very grateful to the MTS retail network for its productive work, expertise and - even more valuable - a strategic vision for the development of the mobile retail market. I hope that our solutions - current and those that are still in operation - will help the company become an even more valuable partner for its customers and increase the gap from competitors,}}