Singapore-based fintech startup Acudeen is seeking to raise money to provide small- and medium-sized enterprises (SMEs) with what it claims will be a viable alternative to letters of credit (L/Cs).

It is seeking to raise cash from an Initial Coin Offering (ICO) to shift its online receivables marketplace onto a blockchain platform.

ICO explained

An ICO is an unregulated means by which funds are raised for a new cryptocurrency venture, often used by startups to bypass the rigorous and regulated capital raising process required by venture capitalists or banks.

In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies.

L/C difficulties

Acudeen, which currently operates in Myanmar and the Philippines, maintains it is becoming ever more difficult for SMEs to obtain L/Cs due to issues both in the market and the regulatory environment.

The firm wants exporting SMEs finding it difficult to obtain an L/C to join the Acudeen platform and list their receivables for sale online instead.

High visibility

Once uploaded, the receivable is immediately visible to funders - which Acudeen says include banks, financing companies and high-net-worth individuals - to buy at a discount.

Joining the platform is subject to a know-your-customer process, which according to Acudeen typically takes just a few hours.

Acudeen's coin offering launches on 9 April 2018 while its token pre-sale is set to end on 8 April 2018.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.