Accelerate Factory Receivables What is Isle Finances TripleWin Strategy for Resolving Corporate Turnover Issues

Traditional industries face payment delay challenges
The most painful thing for the manufacturing industry is “payment delay”. As long as the customer’s payment does not come in, the seller may even face the risk of bankruptcy.
Isle Finance from Taiwan is targeting the funding turnover and financing pain points of traditional manufacturing industries and supply chains, creating an on-chain agreement that allows the buyer to borrow from the funding pool and make advance payments to the supplier, providing both parties with more flexibility in funding turnover.
The theoretically beneficiaries of the Isle Finance service fall into three categories: the buyer’s funds can be more abundant, the seller can receive payments on time. In addition, the “liquidity provider” who provides funds can also earn interest income from it.
What difficulties do suppliers and buyers actually encounter?
In the operation of traditional manufacturing, OEMs, or factories, after the seller provides products or services to the buyer, the buyer still needs to process and produce, and the funds will only be paid to the seller after the product is sold.
Taking the footwear industry as an example, assuming that a supplier from Taiwan sells shoelaces to Nike, after providing the shoelaces to Nike, Nike needs to produce complete shoes with the shoelaces and other accessories, and sell them through different sales channels, and settle the sales. After Nike sells the shoes and earns revenue, they will then pay the seller for the shoelaces.
Isle Finance CEO Lin Bocheng said: “This process may take weeks or even months. Sellers usually hope to receive payments as soon as possible to accelerate business expansion. However, buyers expect to extend the payment period to ensure that funds can be paid at the most favorable time. Therefore, the payment time difference has become a problem faced by both buyers and sellers in the supply chain.”
The above is just a more reasonable scenario. In a buyer’s strong market, unequal contracts may be signed, and the performance period may be as long as a whole year.
In addition, Isle Finance’s Chief Strategy Officer Yang Chunlan added that small and medium-sized sellers often need funding turnover due to buyer payment delays, and financing from banks is one way. However, when banks handle these financing requests, they usually need to undergo strict due diligence procedures, including evaluating the credit risk of the enterprise, which not only takes time but also limits the financing capacity of many small and medium-sized suppliers.
Isle Finance’s Impact on Supply Chain Financing?
Isle Finance is a payment credit agreement on the PayFi track. As a buyer (in the example above, it is Nike), if they want to pay the seller (shoelace manufacturer) in advance, they can borrow from the Isle Finance funding pool and repay later. In this way, the buyer will directly receive the funds.
Lin Bocheng described Isle Finance as an “on-chain credit card machine”. Once approved, the agreement will give the buyer an on-chain credit payment limit. After the seller’s invoice is uploaded to the chain, the buyer can sign on the chain with a private key (similar to the process of swiping a credit card), and Isle Finance will pay stable coins to the seller’s wallet, and the buyer must repay the “card fee” before the due date.
As for the liquidity providers of the funding pool, they can be individuals or institutions and earn returns from the interest on the buyer’s repayment.
Isle Finance, as a PayFi network, emphasizes the realization of “real-time transactions”, obtaining rapid fund flow, and breaking away from the traditional financial system to solve the financial problems of real assets with blockchain technology. Yang Chunlan explained that for cross-border payments and corporate loans, PayFi not only accelerates the payment process but also reduces transaction costs.
Overcoming Market Education and Compliance Challenges
Guo Zhuanyi, Chief Operating Officer of Isle Finance, admitted that it is not easy to introduce Isle Finance or stable coins to traditional enterprises, as many companies still have many concerns and misunderstandings about cryptocurrencies, and their understanding of cryptocurrencies still remains in the negative news reports.
To overcome these challenges, Isle Finance is actively cooperating with compliant cryptocurrency exchanges to help companies convert stable coins into fiat currency to meet the funding needs of traditional enterprises. In addition, the team continues to promote market education, allowing more companies to understand how to use blockchain technology to improve the efficiency of fund flow in the supply chain.
Isle Finance will officially launch the main network in the fourth quarter of this year. Guo Zhuanyi stated that Isle Finance has already started cooperation negotiations with many Taiwanese and international companies and plans to expand its service scope. “Because Isle Finance uses a blockchain payment network, it can provide cost-effective and convenient credit payment services for companies, and has the opportunity to cover global suppliers without the need for a bank account, just by connecting to the network,” said Guo Zhuanyi.
Isle Finance’s service is well-intentioned and truly leverages the features of blockchain technology. However, when it comes to the real-world marketplace, there are too many problems that technology may not be able to solve. It remains to be seen how many people Isle Finance can attract, and how many businesses can experience the beauty of the blockchain world.