Why PayFi and how to access it?
First, let's talk about the difference between PayFi and traditional term payments.
đȘTraditional Term Payments; Traditional B2B Model
Let's take an example of an invoice that is due to be paid to you in 30 or 60 days after completing a jobâŠ
===> You have to wait for the due date to receive your money, even if you urgently need it, you can do nothing but borrow elsewhere.
===> You remain exposed to the risk of the client's cash flow default; you may receive bad news at the due date that could delay the payment. To get money faster, you are forced to go through a bank discount or a loan which means Guarantees and interest of 1 to 3%âŠ
In short, you have no controlâ
PayFi is the solution to your problem; you receive almost all of your payment immediately without paperworkâ
What will you need?
Since it works only on the blockchain (Solana by default), you need:
đžA wallet
đžA bit of $SOL for gas fees
đžAn invoice with a confirmed term payment with a digital signature (Transaction hash) that proves you are entitled to a payment within a specified timeframe.
Then you go to huma.finance, submit your invoice, and bam, you receive your money in a few minutes.
Note that the fees are very minimal, less than 1%, and are payable by the debtor at maturity⊠for example, if you request a payment of $5000, and the fees are 0.2%, you directly receive 4990 $USDC and the protocol deducts $10 at maturity.
As a result, you will have nothing to fear from the imposed wait, and you control your finances.
đĄBesides that, you can act as a liquidity provider on the protocol⊠well, we will talk about this another time.
#DeFi
