Maximizing Cash Flow & Working Capital

Supply chain processes in production, processing and distribution are comprised of discrete events that have defined data inputs and outputs. Often these events will involve a financial transaction such as a payment or a request for financing. Capturing and verifying events and associated transaction states across a supply chain are the ideal use case for distributed ledger technology or blockchains.

Quantum Financing relies on discrete states of transactional data or “quanta” to determine conditions associated with fully automated risk and credit decisioning tasks that are governed by policies in the form of smart contracts residing on the blockchain. 

Synlian Quantum Financing (QF) is a pure data-centric lending model that captures “Data@Source”, triggering events linked to the flow of trade documentation (invoices, orders B/Ls etc.) and the actual disbursement and collection of funds. In relation to the flows in the above diagram, the Synlian QF model is based on the following constructs:

• Data@Source. This is the initial step and is based on creating a “digital twin” of the system. A system could be a physical domain such as farm or open cast mining operation, a collection of plant operations in a factory from raw materials to finished goods or an entire supply chain involving the movement of goods and services across international boundaries. Quantum meta data is collected based on sense and response signaling from machinery, software applications or IOT devices.  

• Programs. Synlian works with its global partners to develop programs that define parameters for lending, risk and credit modelling and the payment rails to be used to disburse and collect funds. Programs set forth the design and method of integration depending on the type of devices found or deployed within the system. Where possible the program will draw on prevailing national standards or standards used by ESD projects (e.g., Verra), large businesses and governments. 

• Synlian Fund. The umbrella fund created as a Virtual Capital Company (VCC) and sub-funds created by geographic locations linked to individual programs has been designed to operate based on high volume transaction flows regardless of ticket size. Once policies are set within a program, the fund can process a request, disburse funds, and track status for a single invoice or purchase order. 

• Payment Rails. Synlian makes extensive use of Mastercard Virtual Cards (VCNs) that have the key advantage of linking trade data to actual payments often tied to a single invoice making fraud virtually impossible and improving remittance and reconciliation reporting. For large cross border flows in and out of the fund, Synlian uses several digital payments methods that optimize velocity and costs (e.g., FX spreads)