Polytrade is a crypto-backed trade financing platform. It aims at revolutionizing the trade finance sector by incorporating real-world assets against crypto funding. The process of this platform is said to be seamless and will mitigate the risks involved in traditional cross-border receivables financing. The platform will be a win-win situation for both borrowers and lenders as it bridges the gap between mainstream receivable financing and untapped decentralized finance.

What is Polytrade?

Polytrade has developed a decentralized financing infrastructure to turn the ownership of receivables into digital tokens. The purpose is to utilize the liquidity potentials of crypto space making new sources of investment and lending for SMEs. Polytrade provides an opportunity for crypto assets holders to invest their crypto capital into the real-world business. 

1. Borrowers/Sellers — get timely investment to run their business

2. Buyers- get streamlined credit facility

3. Crypto Investors — get interest payments with insured and safe investment in real-world assets.

4. Service providers — Participate in trade finance marketplace to perform key validation activities

Independent of the buyers and investors, the financing of invoices is right now constrained by traditional centralized financing foundations. These organizations connect with borrowers on one side and lenders on the other. There are a lot of challenges for both borrowers and the investors as the process is time taking, requires a number of skillful financial experts, and both the parties involved are charged with hidden expenses. 

However, decentralization of each and every component of the entire value chain by Polytrade and the development of a commercial hub for all intermediaries is how Polytrade aims at revolutionizing receivables financing. Polytrade is also working to eliminate any boundaries or barriers for the new entrants and facilitating these lenders and borrowers to harness the benefits of this trillion dollars financial hub. The development of the platform is such that data and ratings on the basis of past performance for each investor and borrowers have been made available. These ratings and shared sets of information are then used to create risk analysis and interest rate of each transaction accordingly. Enabling this platform via smart contracts also ensures payments to all key stakeholders be automated and immediate.

Polytrade features

The features of the Polytrade platform can be divided into two categories. The first one is for borrowers and the other one for investors. 

For Borrowers

There will be no flooring or ceiling limit to borrowing in the Polytrade platform. Loans of any size and value can be invoiced according to the capital need of your business, unlike traditional financing. There will be no hidden charges and costs for the borrowers. Everything is transparent and legally complied with costs as low as possible. The overall process of sanctioning investments to the business has been made quicker and smoother. Polytrade by providing all these benefits to the consumers has developed a competitive exchange hub for financial services.

For Investors 

Through enabled smart contracts it is easy to access trade finance via Polytrade. Everything regarding your investment will be fully automated and immediate. The other features beneficial for investors include; safe and insured investments, monetization of idle credit lines, and a secured platform for all your investments. A vital element of smart contracts is that they work with the straightforwardness of occasions along with the whole inventory network. Upon the borrower entering the receipt-related data, the platform will send a customized agreement.

Polytrade only invests in insured and validated receivables. Investors can obtain capital gains through diverse options of invoices available from businesses all around the globe. With the surety of audited and legal investments secured by crypto blockchain-based infrastructure providing the most secured investment opportunities than ever before.  Polytrade is also tagging along with the first of its kind trade financing advisory, Riqueza Factex, which will help businesses to scatter their investments across different industries and borders as it has helped businesses in Asia and the Middle East with over hundreds of million-dollar funding. 

$TRADE Tokenomics

$TRADE is the primary medium of exchange for the Polytrade platform. The people holding one of these $TRADE tokens are entitled to the following benefits and characteristics;

• Governance

• Staking rewards

• Borrowers

• Buyers

• Service providers

The $TRADE token will allow holders to be part of decision-making and will be able to influence the decision-making process of the protocol. There will be rewards for buying and staking in the $TRADE token. There will be special offers for borrowers and buyers who hold these tokens in form of reduced interest rates and discounted invoices for them respectively. Tokens will be used to incentivize the key processes and service providers of services like validation and evaluation of credit, personals, and documents. 

The token allocation for Polytrade is rather simple as compared to other DeFi platforms. They have issued a total of 100000000 $TRADE tokens. Out of which they have allocated a large amount of 39.42% of total tokens for incentivization purposes. This shows their focus on the community building purpose and the importance of providing extraordinary service to their users. 20% of tokens are allocated for marketing and ecosystem expenses and rewards. Moreover, 17% are allocated for rewarding teams, 3.25% for strategic purposes and 7.50% for initial seed investing, another 7.50% for private funding, and 1.33 % is allocated for public trading. The unlocking schedule of all of the tokens is spread over a 5 year’s program. All of the allocated tokens will unlock at the same pace and over the same period of time. 

TRADE coins will help develop the confidence of the stakeholders also, give financial backers certainty about managing valid purchasers and dealers. Once there is sufficient footing and clients, the coins can develop as free digital money with their own market. 

The Takeaway

While Polytrade will start with a focus on trade finance, eventually, it would evolve into a full-stack lending protocol for small businesses. The Polytrade stage can take care of all serious issues looked at by partners in the receivables financing environment. Each partner gains by doing an exchange on the stage. With better access than liquidity, wise mechanization, vigorous security, and more prominent transparency, the stage can scale quickly and catch a huge portion of the receivables finance market.

For now, they are focusing on team building and people who are coming on board is also one of the unique selling points of the Polytrade platform. There are people in their team who have worked for top100 fortune companies. These are veterans who have expertise scattered over invoice discounting, finance, and digital finance along with blockchain-backed crypto assets. 

There are still many countries that do not allow initial coin offerings and blockchain-backed crypto are not legally approved. These countries and their nationals cannot participate in financing activities provided by Polytrade platforms. Being legally compliant is one of the pillars of Polytrade.