Leobit
Blockchain-Based Supply Chain Financing Solution
Development of a tech-driven supply chain finance platform that releases cash from unpaid invoices
ABOUT
the project
Our client’s supply chain financing solution aims to shift all payment risks to debtors, typically large companies, thereby eliminating common supplier-related risks found in traditional factoring and invoice discounting processes. From the supplier’s perspective, this solution offers invoice financing at similar or better rates than banks, with the added benefit of streamlined processes and no binding contracts.
Here’s how it works: when a supplier delivers goods or services and submits an invoice, the debtor automatically approves or rejects the invoice through their accounting system. The supplier then selects which invoices they want to finance and when. Approved invoices are financed through our client’s solution, with payment to the bank made on the invoice’s payment date.
The project posed several challenges, but thanks to the expert input of our senior back-end developer, we were able to overcome the challenges and also ensure data security and further growth and development of the platform.
CUSTOMER
Our customer is a tech-driven supply chain finance platform that simplifies invoice financing, making it quick and cost-effective. They cater to large and medium-sized companies with strong credit ratings, helping them reduce supply chain risks and enhance cash flow management. Their buyer-led supply chain financing solution allows buyers to extend payment terms without negatively impacting their suppliers.
BUSINESS
CHALLENGE
The customer had an in-house development team. However, due to the complex nature of the project, they lacked the expertise needed to further develop the project, address challenges, and plan project architecture to support future growth. Certain parts of the project required rebuilding from scratch, while others needed enhancements, fixes, and architecture changes.
The customer wanted to automate their business processes while ensuring a high level of security for transactions and data. When we began our collaboration, they used the first version of the app that resembled spreadsheet files, with most tasks being handled manually. Thus, the challenge was to automate document generation and management to streamline workflow and facilitate scalability.
Additionally, given the sensitive nature of the data involved, safeguarding user personal information and preventing invoice fraud on their platform were key concerns our client entrusted us to address.
Why
Leobit
The customer chose us because of our experience building fintech solutions and expertise in Ruby (Ruby on Rails). The project posed numerous technical questions, particularly regarding performance, architecture and secure data handling. Leobit, with its extensive experience in building GDPR, CCPA, and OWASP-compliant custom software solutions, proved to be the perfect match to address these challenges.
Project
in detail
We started our cooperation by rewriting the existing source code, fixing errors, and implementing more optimal coding practices. Once the foundation for error-free software was established, Leobit’s development team integrated approximately 35% of the platform’s new functionality.
Document management automation
Our tech experts suggested automating document management and generation to optimize routine workflow and enable scalability within the system. We created templates for various invoice options and optimized background workers to use optimal thread counts. This allowed us to convert the invoice to a high-fidelity PDF file and quickly deliver it to the user. Resolving concurrency and performance issues and implementing batch processing of document generation significantly reduced memory consumption.
Such automation allowed business owners to focus on primary business objectives instead of manual document creation and maintenance tasks, improving overall efficiency and productivity.
Setting up integrations
Our tech experts recommended integrating third-party tools like Veriff and Smart-ID to streamline operations. Veriff, an AI-powered identity verification tool, played a crucial role in verifying business partners' and customers' identities, backgrounds, sanctions, and credentials. This helped prevent fraud and ensure compliance and customer security. Additionally, we integrated Smart-ID, enabling platform users to sign documents online with the same legal validity as handwritten signatures.
Secure data handling
Given the sensitive nature of the user data collected and processed by the customer's company, protecting personal information and preventing invoice fraud on their platform became a priority. To address this challenge, our senior back-end developer suggested enhancing data safety by adding an extra layer of security — performing Guardtime KSI Blockchain integration. KSI Blockchain is being used by governments and leading companies in various sectors as it helps ensure data integrity, verify the correctness of processes, and provide federal-level protection for the customer's clients.
Technology Solutions
-
KSI Blockchain technology integrated into the finance solution ensured secure data handling and made the platform compliant with international standards
-
Veriff integration allowed performing automatic identity, backgrounds, sanctions, and credentials verification of the company’s business partners and customers
-
Adopting Elasticsearch and Kibana to manage and visualize large volumes of data generated by an application
-
Integrating third-party tools like Veriff and Smart-ID helped prevent fraud and ensure compliance and customer security
-
Implemented global search using defined criteria to streamline operations and enhance user experience
Value
delivered
-
Optimized business processes thanks to automating the platform’s reporting system
-
Secure exchange of invoice data and confirmations entirely through the web interface
-
With expanded capabilities, the platform quickly became one of the leading supply chain finance providers on the EU market and counts 100+ legal entities