ZK FACTOR

Privacy-Preserving Invoice Factoring

Built on Aleo Blockchain

The $375B Fraud Problem

🚨 Double-Factoring Fraud

Companies sell the same invoice to multiple factors. Only one gets paid.

Centralized Registries Fail

  • Siloed between competitors
  • Require trust in operators
  • Not real-time
  • Manual verification takes days

Privacy Destroyed

  • Customer relationships exposed
  • Invoice amounts revealed
  • Cash flow problems visible
  • Competitive intelligence leaked

Cryptographic Solution

Zero-Knowledge Proofs + UTXO Model = Impossible to Double-Factor

Invoices become cryptographic assets that are consumed during factoring. Their serial numbers are published on-chain, making re-use mathematically impossible.

1. Invoice as Digital Asset

Encrypted record on Aleo. Only owner can spend it.

2. Atomic Factoring

One transaction: invoice consumed, serial published, payment sent.

3. Automatic Prevention

Re-factoring attempts fail automatically. Protocol checks serial number.

Complete Privacy

  • Invoice amounts encrypted
  • Customer identities hidden
  • Business relationships confidential
  • Only legitimacy proof is public
  • Zero-knowledge cryptography

How It Works

1

Create Invoice

Encrypted record minted on-chain

2

Browse Factors

Compare rates and terms

3

Factor Verifies

Check serial unspent

4

Instant Payment

Atomic swap completes

⚡ Atomic Transaction

Invoice consumed → Serial published → Payment sent → Fraud prevented. All or nothing.

✓ First Factoring (Succeeds)

Invoice #1234 → Factor A
Serial SN-1234 published

✗ Double-Factor (Fails)

Same Invoice #1234 → Factor B
SN-1234 already spent → Rejected

Built on Aleo

Why Aleo?

  • Layer-1 privacy blockchain
  • Zero-knowledge proofs native
  • Instant finality (<2 seconds)
  • UTXO prevents double-spend
  • Encrypted on-chain storage
  • $200M+ funded (a16z, SoftBank)

Smart Contracts (Leo)

Zero-knowledge circuits for private computation

Private State (Records)

Encrypted invoice records with UTXO semantics

Public State (Mappings)

Factor registry, settlement tracking

🔐 Cryptographic Security

zkSNARKs prove legitimacy without revealing details. Atomic execution guarantees no partial failures.

Privacy Architecture

Data Visibility Protection
Invoice Amount Business + Factor Only Record encryption
Customer Identity Business + Factor Only Record encryption
Factoring Terms Business + Factor Only Record encryption
Business Relationships Obfuscated Pseudonymous addresses
Serial Numbers Public Required for fraud prevention

🔒 Private

Invoice amounts, customer IDs, payment terms, business relationships, cash flow patterns

👁️ Public

Transaction occurrence, serial numbers, program function, transaction fees

Key Features

🛡️

Cryptographic Fraud Prevention

Mathematically impossible to double-factor. No trust required.

🔐

Complete Privacy

Amounts, identities, relationships stay encrypted.

Real-Time Verification

Instant invoice status checks. No waiting days.

🔄

Atomic Swaps

Payment and transfer happen simultaneously. No risk.

🌐

Decentralized Registry

Works across competitors without cooperation.

💰

Lower Costs

20-30% cost reduction vs traditional factoring.

🚀

Instant Settlement

Finality in <2 seconds. No settlement risk.

📊

Transparent Stats

Public protocol metrics without compromising privacy.

Revenue Model

💰 Transaction Fees

0.1-0.25% of invoice value

🏢 Factor Subscriptions

$500-$5K/mo based on volume

📊 Analytics (Privacy-Preserving)

$1K-$10K/mo aggregate insights

🔧 Enterprise

Custom private deployments, APIs

Product Roadmap

Q2 2026 - Phase 1

MVP Launch

Core platform: invoice creation, fraud prevention, atomic swaps, marketplace, settlement

Q3 2026 - Phase 2

Enhanced Features

Partial factoring, recourse, syndication, mobile wallets, API integration

Q4 2026 - Phase 3

Enterprise Scale

Credit scoring, analytics, cross-border, white-label, delegated proving

2027 - Phase 4

Ecosystem Expansion

L2 scaling, supply chain integration, banking partnerships, multi-chain

Go-to-Market Strategy

1

Pilot

5-10 progressive factors

2

Prove

100% fraud prevention

3

Network

Value compounds

4

Scale

Adjacent markets

🎯 Target

Mid-size factors ($50M-$500M AUM) losing $5M-$50M/yr to fraud

📣 Channels

Industry conferences, trade pubs, direct outreach, partnerships

💪 Moat

First-mover, network effects, technical complexity, patents

🤝 Partners

Accounting software, credit bureaus, trade associations, regulators

Transform Invoice Factoring

📧 Contact

ZK Factor • Built on Aleo • Privacy-Preserving Invoice Factoring