Starting a business, achieving the desired results and growing sustainably are major challenges for entrepreneurship in Brazil, especially for small and medium-sized enterprises. On the other hand, asset tokenization has emerged as an effective alternative for this segment.
One of the biggest difficulties for small businesses is raising funds, whether to inject capital into operations, invest in growing results or expanding the company.
On the other hand, there is one fact that is unquestionable: SMEs account for 27% of national GDP, 53% of trade GDP and 47% of industry GDP.
One of the great foundations of the tokenized economy is democratizing access to possibilities and finding more people who can invest.
BLOCKBR, a company that develops tokenization infrastructure, will address the importance of the tokenized capital market to leverage the success of small and medium-sized businesses!
WHAT ARE THE CHALLENGES FOR SMALL AND MEDIUM-SIZED ENTERPRISES IN RAISING FUNDS?
Although the alternatives for raising funds are almost the same for companies of all sizes, the SME segment faces well-known obstacles.
LACK OF CREDIT HISTORY AND GUARANTEES
Even for SMEs that have been established in the market for some time, it is difficult to obtain bank or public credit due to a lack of consistent payment history or collateral to offer compatible with the loan.
PERCEIVED RISK
This is an indicator that greatly limits SMEs’ access to third-party capital; their perception as riskier investments when compared to large companies, which makes it more difficult to attract financing.
HIGHER FINANCIAL COST
This is a natural consequence of the greater perception of risk in SMEs: higher interest rates and other costs associated with financing, which increases the impact of the cost of capital within the company and can lead, in many cases, to financial imbalance.
Tokenization to capitalize businesses breaks this cycle, giving the company freedom to make decisions in line with its planning and create the reality that will increase the chances of success!
See also: what it is, how it works and what the potential is for DREX, Brazil’s digital currency, to replace the Real!
WHAT ARE THE BENEFITS OF TOKENIZATION FOR SMES?
To tokenize is to digitally represent a real or financial asset, a right or a business project and offer it to the market to attract investors and generate capital with advantages that don’t exist in traditional forms. See some of them.
DEMOCRATIC ACCESS TO COMPANY OFFERS
A great advantage of offering assets or rights with tokens is the possibility of dividing the asset into hundreds or thousands of tokens, so that the unit value of the share is very low and can attract a larger number of interested parties – especially small investors.
They want to participate in the capital market but suffer from the barriers imposed by the traditional financial system – not unlike what happens with SMEs, right?
A very common example is real estate tokenization, where the property is split up and allows people to invest and earn proportional returns from rentals and future sales.
BUSINESS ADAPTABILITY
There is no sector of activity that cannot convert into tokens a lucrative potential that would yield less or take too long on the traditional market.
It is possible to tokenize real assets, financial assets, future rights – for example, precatory bonds – and also raise funds for projects with income distribution.
One operation that is increasingly present in agribusiness is the offer of tokenized harvests of family farming products, an efficient way of raising funds for small agribusinesses.
100% SECURE AND TRANSPARENT ELECTRONIC OPERATION
Tokenization is a 100% electronic digital process with the highest business transparency for offerors and tokenists – the token investors. This is possible thanks to:
- Blockchain technology, recognized for its high levels of data security and operations;
- High-level end-to-end encryption;
- Smart contract, the digital document that manages the tokenization of the offer to the distribution of the agreed proceeds.
BLOCKBR has a whitelabel platform for digital assets, the most secure and robust environment for offering tokenized assets, with KYC and AML, bankable operations. structuring library and compliance with CVM Instruction 88.
LOWER COST AND GREATER LIQUIDITY AND PROFITABILITY
- Token offerings are not subject to intermediaries like regular market banking and financial operations. As a result, the final cost of tokenization is lower;
- The fractioning of the asset, combined with the attractiveness of the asset, accelerates the liquidity of the offer, reducing the project’s maturity time;
- It is possible to price unit tokens better and generate more profitable fundraising.
See also: how to become a self-employed investment advisor and profit more from tokens!
WHAT CAN BE TOKENIZED AND GENERATE CAPITAL FOR SMES
CREDIT RIGHTS
It’s the tokenization of receivables that replaces bank advances, but with better results, because there are no banking costs involved – the token trades are made between offeror and investor on the platform of a VASP, the company specializing in business tokens.
Fractionalizing receivables makes it possible to reduce the discount or maintain and accelerate demand and liquidity.
FUTURE REVENUES AND OBLIGATIONS
It is possible to offer other potential revenues in tokens.
- Tokenized long-term contracts;
- Royalty tokens, patents, trademarks and copyrights;
- Company debts, with a return based on interest on invested capital.
REAL ASSETS
The company can tokenize real estate, machinery, equipment and entire industrial parks as a way of generating capital that can be reinvested, avoided being sold and remunerated based on profitability or other criteria.Tokenizing does not transfer ownership of the asset in the vast majority of offers, which follow the model of participation with the right to profits, as is the case with real estate funds. [067-095]
TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!
Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.
For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:
- Technical, fiscal and legal feasibility study;
- Issuance of tokens and smart contracts with transparent governance;
- Distribution of tokens on a simple and secure sales platform;
- Efficient and assertive tokenization governance.
Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.
You don’t want to see your competitor get ahead to make more money.
Or do you want to?
BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.
Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.
We take care of all the technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationships!
