The retail network "Magnit" was connected to the Factorin blockchain platform

2019: Connection to the Factorin blockchain platform

Suppliers "Magnet", working with retailer on the terms of a payment deferral, got access to fast to financing from large banks and factoring the companies which were connected to independent blockchain- the platform Factorin. Term from submission of the request by the supplier before receiving money for the account was reduced from two weeks to one day. It became known on January 23, 2020.

Factoring is a best financial instrument for situations when delivery of goods or service happens on the terms of a payment deferral. But it is extremely difficult to medium and small business to receive factoring financing even if payment is guaranteed by large buyers. The transaction can be for the small amount, but volume of work on it for bank or factoring company, will be same, as on financing of the multimillion contract: reconciliation of registers from the supplier and the buyer, search of errors, verification.

"Magnet" works more than with 5 thousand producers and distributors through the whole country and is interested in their development and growth. To provide to the partners access to stable financing, the retailer was connected to Factorin – to a technology platform which automates the relations of buyers, suppliers and factoring companies, significantly reducing time and operating costs of execution of the transaction for all its participants

Key feature which distinguishes Factorin from other solutions in the market – protection of commercial data. Business systems of the companies connected to the platform exchange only the ciphered data therefore information on transactions is available only to its participants. The platform has open API which allows external commands to create modules and integration.

On the platform suppliers of Magnet will be able to receive during the day financing from more, than 20 banks and factoring companies. All of them will be available in the mode of "one window" through a web or mobile application of Factorin to iOS and Android.

To us it is important that it was convenient to suppliers to work with Magnet. Having become the participant of Factorin, we considerably facilitated process of receiving short-term financing to our partners, first of all the local suppliers who are often forced to refuse services of factoring because of high transaction costs told Elena Milinova, the chief financial officer of Magnet