Turn your inventory from an illiquid asset and balance sheet burden into a blockchain asset giving you cash flow relief and reduced COGS.
A special purpose vehicle on the blockchain, Skuchain’s Inventory Management and Trading Services LLC (IMT®) provides inventory financing that de-risks transactions and unlocks capital opportunities for the entire supply chain.
Financing a transaction through IMT enables both buyer and seller to leverage currently unavailable arbitrage opportunities. In a typical transaction, the original purchase contract between the buyer and the seller is assigned to IMT on the blockchain. This acts as a Blockchain Based Security Interest that provides the collateral to an investor in the IMT fund.
IMT uses its funds to purchase goods from the seller and stores them at a VMI warehouse. Finished goods are shipped pursuant to a purchase order from the buyer, a process covered by insurance. The buyer then pays IMT for the goods.
Using IMT, all suppliers from Tier 1 to the most upstream partners, can finance their inventory at the buyer’s cost of capital. The buyer receives, in return, reduced COGS and lays the foundational incentive for adoption of blockchain technology across the supply chain.
It is important to note that while IMT has been the primary vehicle for pilot transactions, there has been discussion with anchor buyers to set up their own IMT vehicle, which will run on Skuchain’s blockchain technology but will be operated and financed by that buyer.