A permissioned Hyperledger-based solution can help companies share key information about the invoice on the ledger and not give them a detailed insight about a customer's data. Even though it's a consortium of banks, financial institutions, and so on, they are competitors. In a consortium-based solution, the invoice seller will connect with a specific factor (bank or a financial institution). The digital identity of the invoice will be verified over the blockchain network. In the case of uniqueness, that invoice will be considered by the factor (bank or financial institution) for factoring. A supplier can allow their clients to be part of the blockchain network so that clients can directly pay the factors. All of the transactions will be processed through the blockchain network, which is signed by the digital identity of the transacting party and will include information about the digital identity of the invoice (digital asset).

As you can imagine, the digital identity, also known as the digital token, of the invoice is issued by the blockchain network and will be unique. Hence, a double invoice cannot occur on a blockchain network. Besides that, all of the parties, such as banks and financial institutions, are in the consortium; hence, everyone will know about the invoice, which eliminates any communication issues. This will also check any chances of the seller taking the same or a tampered invoice to multiple lenders at the same time. If they do so, the invoice will be paid for only one request, and an act of double invoicing will be recorded permanently on the blockchain, which can hit the credit rating of the seller. As the blockchain network evolves, more emphasis can be given to the credit scores of the sellers and lenders. The better the rating of a seller is, the less they need to pay as a fee would encourage legal and trustworthy sellers. With blockchain, invoice factoring can also be taken forward to small and medium investors.