Ratings indicate whether a customer can make a payment. but they say nothing about whether the debtor will make the payment on time and in full. Solvency and payment behaviour are completely uncorrelated. Large companies in particular pay their suppliers according to their internal payment run - irrespective of the deadline set by the invoice. Investors in trade reveivables need both: the certainty that debtor can pay and an assessment of when and how much they can expect. Only then they can calculate present values of trade receivables.
To ensure that receivables really exist the market mistakenly so far used ratings of the receivables seller as a proxy metric for fraud risk. Ratings, however, are only measures of financial solvency.
Misallocation, as all receivables sellers with insufficient credit standing are suspected of fraud
TrustBills gets Account Information and Payment Initiation Service access to their bank accounts from every marketplace participant.
A matching procedure recognizes when the debtor pays the money to the bank account of the supplier around the due date of the receivable. TrustBills then immediately initiates a transfer from the bank account of the seller of the receivable (=supplier) to the bank account of the buyer for the invoice amount.
From the information from payments and invoices, TrustBills creates payment behaviour statistics for supplier-debtor-relations that are made available to investors on TrustBills as investment choice criteria.
By uploading trade receivables the seller of the trade receivables guarantees the existence and the assignability of the uploaded trade receivables
On TrustBills, all marketplace participants are clearly identified through a KYC process - so the seller's guarantee is effective.
TrustBills provides credit insurance information to all marketplace participants and debtors. Thus, the value of the sellers' guarantee can be assessed.
State-of-the-art ML and AI methods check trade receivables for possible fraud attempts.