What Is Bitcoin
Bitcoin is one of the first available cryptocurrencies that came to the market. Bitcoin is not controlled by any bank and is a decentralized currency. Bitcoin can be used on peer-to-peer bases on a secure bitcoin network and there are no intermediaries needed. When a transition is made using bitcoin the transition is documented in a public distributed ledger also known as the blockchain. The exact person who invented bitcoin is unknown but it was established back in 2008. Bitcoin can be used for online gambling and to make certain online purchases. Bitcoin can also be exchanged for different types of currencies and can be used to purchase products and services. Bitcoin is expected to grow in its usage between 2017 and 2020. Research has been done and it is estimated that there will be at least 2.9 to 5.8 million individuals using some sort of cryptocurrency wallet and most of the users will be using bitcoin.
What Is Cryptocurrencies Factoring
When a business gets into a contract with a factoring company the factory company is agreeing to purchase a business unpaid invoices. Invoice factoring helps a business to get the funds that they need for payroll or any other operations. But the business often has access to the funds within 24 hours. Invoice factoring is a very simple process the business just submits its current invoices or accounts receivables to the factory company. The business then receives payment for the invoices. The factoring company is responsible for the invoice collection process. Invoice factoring makes lending simple.
Invoice factoring allows the business owner to be worry-free and to focus on growing their business instead of on collecting invoices. Everyone knows that traditional invoice factoring is usually for the dollar or the euro currency. But there is an alternative form of invoice factoring available in the crypto-currency sector called cryptocurrency factoring. Cryptocurrency Factoring is a new factoring process that gives a business owner access to factoring for bitcoin. This new crypto factoring process is gaining a head of steam because it opens up more factoring opportunities for businesses. Crypto factoring prevents business owners from having to pay fiat currency bank fees. These fiat currency bank fees can be draining and taxing on a business. These fees have the biggest effect on small to medium-sized businesses that have small budgets. Crypto factoring gives the business owner an alternative factoring method that will help them avoid the fiat currency bank fees.
The Benefits Of Crypto Factoring
There are multiple different benefits to using crypto factoring. The first reason is that this blockchain technology gives businesses an alternative currency when it comes to the factoring process. Cryptocurrencies Factoring has some of the best total transaction security, funding is lightning fast, and crypto factoring provides smart-contract technology that prevents other parties from defaulting on contracts. Crypto factoring has paved the way for efficient and secure flows of money that has never been seen in the factoring industry before. Cryptocurrencies factoring also allows the factoring company to have the ability to leverage the cryptocurrency which in turn helps to put more profits into their customer’s pocket. The traditional factoring process can be very time-consuming and labor-intensive. It also takes at least 24 hours for the funds to be available to the business. The reason why it takes over 24 hours is that the invoice must be verified and the customer’s credit must also be checked before any funds are released to the business. This is why crypto factoring is becoming very popular because all these different processes and wait times are eliminated.