Halotrade is a blockchain based ethical supply chain financing platform. We use distributed ledger technology to trace product journey, capture ethical certification and trigger smart contracts. This Halotrade is a blockchain based ethical supply chain financing platform. We use distributed ledger technology to trace product journey, capture ethical certification and trigger smart contracts. This means we can deliver automated access for suppliers to cheaper working capital. We create a virtuous cycle of performance and incentive to comply with ethical manufacturing standards.
Halotrade uses a mobile app to create a digital identity of product which is then recorded in a shared ledger. Connections to ethical auditors and ERP integrations allow the Halotrade smart contracts to match and approve invoices. This means we can facilitate cheaper and faster working capital financing to suppliers throughout the supply chain.
The financing is dependent upon the output of the digital tracking of the factory or farm level ethical certification and traceability of the product, which is surfaced through the user interface. Invoice, purchase order, goods receipt note and ethical certification are matched with shipping documents. Using business logic contained in code managed through the smart contracts approved invoices are visible to the financing bank/funder via a dashboard. Financing is provided under the "reverse factoring" or dynamic discounting model which allows the supplier to access funding priced at the rate normally available to the buyer rather than the supplier. When a non investment grade supplier in an emerging market can fund the working capital cycle at the same rate as an investment grade buyer in a developed market, the incentive to comply with using the Halotrade system becomes very clear.
As invoice processing is now automated the product tracking is clear and visible. Ethical supplier certification is provided automatically and overall financing cost is lowered. The same product can now be sourced with a fully transparent history, without adding any additional cost to the unit price. So a retailer's implied promise to the consumer that a product is ethical can be fulfilled. Compliance with regulatory obligations for supply chain transparency under the Modern Slavery Act or US Customs legislation, Dodd Frank and the Bribery Act can be achieved as well. Halotrade powers ethical manufacturing and production, driven by finance-for- good, improving business performance in standards of sustainability, environmental responsibility and human rights.more
CEO Trade Financier of more than 25 years experience in international banking