Many small and medium-sized business owners are more afraid of having no business than of 'money being stuck in the account.'
A customer's invoice takes three months to settle, while the factory needs to pay workers' wages and purchase materials immediately. Traditional supply chain financing channels either have complicated procedures or high interest rates, which make many businesses hesitate.
Huma Finance proposes a new solution here: directly moving the accounts receivable on the supply chain onto the chain, utilizing the PayFi model to discount future cash flows into immediate liquidity. Unlike traditional finance, which relies on centralized factoring companies or banks, Huma uses smart contracts to automatically evaluate cash flow patterns, safely and transparently issuing 70-90% liquidity. For suppliers, this means that cash flow is no longer dependent on 'the client's mood,' but rather a programmable financial right.
Interestingly, such supply chain PayFi could also give rise to new financial products:
Invoices can be sliced into 'income certificates,' and businesses can even package and sell them to investors;
Upstream and downstream companies in multinational supply chains can directly obtain financing through on-chain agreements, bypassing traditional bank barriers;
In the long term, the entire supply chain may evolve into a 'credit network on the chain.'
This is not only a new experiment in DeFi but could also be a breakthrough that allows blockchain to truly take root in the real economy.
