Beating the banks with blockchain

Crowd for Angels —  December 7, 2015 — Leave a comment

It’s a well known fact that the majority of start-up companies fail to be a success. This could be down to a bad product, poor marketing, high competition or a number of other factors. But even if companies are successfully selling their wares, hundreds, if not thousands of them, can fail due to poor cash flow management.

Getting customers to pay their invoices promptly can be a major challenge for entrepreneurs. And when clients eventually do pay their bills companies can experience additional delays via the banking system. For example, traders who take card payments typically have to wait at least 72 hours for funds to be cleared and reach their bank accounts.

This is down to the way that current banking systems are organised, with transactions processed via a slow and archaic centralised system. Waiting even three days for payment can cause considerable pressure on small companies’ cashflow, restricting their ability to pay bills and invest in growing the business.

But two rapidly developing and disruptive technologies known as “blockchain” and “distributed ledger” are helping to speed things up.

Blockchain is a technology which is behind the way crypto-currency Bitcoin works.

Put very simply, the blockchain is a public (or distributed) ledger which records ownership of an asset. In contrast to current systems – which use a private and centralised ledger – copies of the blockchain are stored on thousands of computers across the world. Being distributed freely and openly the technology is able to approve transactions much more quickly by cutting out the middleman and obtaining a consensus approval.

The industry has received much attention in recent years, with a recent report from Santander entitled Fintech 2.0 suggesting that distributed ledger technology could save banks up to $20 billion in costs by 2022.


Distributed ledger vs centralised ledger. Source: Santander Fintech 2.0 Paper

 Investing in blockchain

One company which is using blockchain technology is Payver.

The firm is a technology and quasi-financing business which helps small businesses to receive funds from their card transactions much more quickly. Using its bespoke software (based on distributed ledger technology) the company is able to provide small businesses with almost instant funding against their received card payments. Its business model is based on receiving a monthly fee of between £10 and £25 from users of the Payver app along with a small fixed fee for every transaction completed.

Payver is currently looking to raise £300,000 on the Crowd for Angels platform.

To see the full details of the pitch CLICK HERE




Risk Warning

Investing in small public listed or private companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowd for Angels is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own Investment Decisions. You will only be able to invest via Crowd for Angels once you are authorised. Please click here to read the full Risk Warning.

This page has been approved as a Financial Promotion by Crowd for Angels (UK) Limited (Company number: 03064807) , which is authorised and regulated by the Financial Conduct Authority (Reference number: 176508). Investments can only be made on the basis of information provided in the Pitches by the Investee Companies concerned. Crowd for Angels takes no responsibility for this Information or for any recommendations or opinions made by the Investee Companies.

Crowd for Angels


Crowd for Angels is the first directly regulated crowd-funding platform for equity and debt funding. We cater for both Private and Public companies.

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