Eventually some smaller suppliers/exporters and buyers/importers will use Bitcoin Factoring. Actually a great idea. Minor detail when any Company in ANY Country imports and/or exports, there is so much paperwork and logging by various Government agencies that both parties in the sale or purchase of the goods still have to declare in fiat usually the USD.
However, a few brave souls out there are taking about using Bitcoin for Factoring instead of using fiat.
Actually smaller garment and textile companies are already seeing that this will probably be used sooner rather than later in:
Cambodia
Belarus
El Salvador
Hong Kong
Honolulu (NOT "Hawaii").
India
Laos
Mexico
Russia (2025 with or without a finish to the war).
Thailand
Vietnam
My biggest complaint from my peers in other Countries is that their own Governments keep changing what is "allowed" this year versus previous years, or this extra taxation, regardless it's coming, the actual use in B2B transactions using Bitcoin.
These are some the realities suppliers and buyers have to deal with
What is the declared price in fiat ?
What is the price of Bitcoin at the time of the payment ?
What was the payor's DCA of the Bitcoin they have possession of ?
Here again, smaller companies can just bypass a factoring their invoices and collect payment in Bitcoin, fast much, much cheaper and breaking up in to smaller installment payments via Lightning seems like the baby steps in trying this out.
We are so early, please keep in mind this handy reference:
Honolulu has many many flights every day from Asia and South East Asia, there are many business people that use Honolulu as a stepping stone to get started doing business in the USA
Why ?
- We are in the middle of the Ocean very few "factories" here, we have to import and export.
- It's logical to use Bitcoin, wire transfers are expensive and time consuming to process.
- Multiple "installment payment(s) and or deposit payments, or shipping payments, etc. can be done via Lightning payments, Zaprite invoicing is a good start for your customers they will see the option to pay with Bitcoin, or ACH, or a card, or link to square or stripe etc.
- It's a sales tool as it can create communication about factoring, and move to just giving or getting a discount of payment is made using Bitcoin.
Other Issues
A. Some Bitcoin payment providers and wallets are "leaving" or no longer support doing any transaction in the USA.
B. Whether your a buyer or seller of goods, If you are holding some Bitcoin that you DCA'ed as your starting point then it's easier to quote what your comfortable with.
C. Look at where tourism is doing good, growing is logically where your newer markets are to go to, especially if your an American.
D. Do NOT underestimate the trade in Belarus, Cambodia, Honolulu (NOT Hawaii), Hungary, India, Kazakhstan, Mexico, Myanmar, Poland, Russia, Thailand, Ukraine, Vietnam it's already taking place. Leave World politics aside, your either a merchant or not, the discussion here is about doing business.
E. Position your company to have at least one distributor, dealer, agent that is standing by and is familiar with your products.
F. Do NOT waste your time with these Countries, remember their stance on the lock downs before. Australia (EXCEPT PERTH it's ok), Canada, New Zealand, The United Kingdom.
G. Contact me if your an actual business person interested in selling your goods to destinations OUTSIDE of the USA. No business reports or academia discussions, merchant mentality only please.
H. Trump will probably shake up things with tariff comments, just stay the course, think opportunities in BOTH Importing AND Exporting. Do NOT think like a generic American, get straight to the point, think one page pdf brochures.
I. Friendly reminders USA uses UPC-A barcodes rest of the World varies. Spend thirty minutes on www.gs1.org