Polytrade has entered into an integration with Chainlink Price Feeds to address cash flow issues in invoice financing by employing blockchain technology. The integration between Polytrade and Chainlink Price Feeds will provide the smart contracts of Polytrade with accurate and high-quality stablecoin price data for the estimation of real-world invoice data of SMEs. Chainlink Price Feeds are employed for determining the borrowing capacity of users and checking the health of loans.
Polytrade is renowned for facilitating around 80-90% of trading finance in the world. Trading finance revolves around financial institutions that provide short term finance in the form of guarantees or letters of credit for facilitating the exchanging of goods and services. However, almost 60% of requests for trading finance put forth by SMEs are rejected. At present, the unresolved demand is $1.6 trillion and the gap is widening each passing day. According to a research report of the World Economic Forum, the gap of unmet demand will increase to $2.5 trillion in 2025 and the developing markets of Africa and Asia shall suffer the consequences of the credit denials.
Through the integration, Polytrade will bridge the gap of unmet demand for the trade finance of SMEs by giving crypto holders access to invoices in the real world. The highly secure and transparent blockchain-based platform of Polytrade offers every cryptocurrency holder with a novel asset class for financing invoices in the real world at Walmart, IKEA, and other departmental stores backed securely by credit insurance. The integration shall also enable SMEs to obtain instant liquidity from short term loans offered by cryptocurrency holders. The collaboration between Polytrade and Chainlink Price Feeds shall establish a holistic infrastructure for trade finance and democratize the access to trade financing, irrespective of geographical locations.