Short Article 3: "Huma Finance x Supply Chain Finance"
There is a global trade finance gap of over $1.7 trillion, and many small and medium-sized enterprises have orders and accounts receivable but cannot obtain loans. Banks find it troublesome and the process is too slow.
Huma's PayFi network is just right to solve this pain point. Once corporate invoices, logistics documents, and delivery records are on the blockchain, they can generate "future income certificates." These certificates can be verified by financing institutions and directly exchanged for liquidity within the Huma protocol.
Furthermore, if combined with IoT data, such as the time goods arrive at the port, transport conditions, etc., financing contracts can also be triggered in real-time. Financing is no longer reliant on paper reviews but rather on real-time on-chain data.
This not only helps small and medium-sized enterprises improve turnover efficiency but also allows investors to participate in the supply chain financing market and achieve higher returns. Huma is not just DeFi; it could be a digital accelerator for the supply chain.
