Less time to manage non-performing loans, thanks to blockchain

Fyndoo will soon be pitching a solution at the NBA that will help the accountant prevent an entrepreneur from going to the bank’s non-performing loans department. Our idea? A blockchain application that enables monitoring of financing covenants.

As an entrepreneur, you make agreements with the bank about your financing. For example, that your solvency must meet certain requirements, and that you send a list of all your customers and their payment performance twice a year. However, if you do not keep to the agreements or if your finances do not meet the agreements made, you will soon find yourself in the hands of the bank’s finance department. Then you quickly end up with the bank’s ‘Non-performing loans’ department.

By giving the accountant tools and the opportunity to monitor these agreements for the entrepreneur, action can be taken much sooner when agreements with the bank are in danger of being broken. In this way, fewer entrepreneurs will go to ‘Non-performing loans’, entrepreneurs will be relieved of their worries and the barriers to business financing will be lowered.

Thanks to blockchain technology, it is possible to model financing contracts as smart contracts and make them exchangeable. This means that an entrepreneur can easily, and in a structured way, share his financing arrangements with the accountant. This enables the accountant to offer services based on this information, such as monitoring the agreements. Because the accountant has much more up-to-date information on the business than the bank does, the accountant can proactively provide services to monitor financing agreements in the interest of the entrepreneur. In this way, the entrepreneur is less likely to run into problems with the bank.