Invoice Verification Tool for Fraud Prevention
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Solution Overview
Problem
Lenders face uncertainty and fraud risks in verifying the existence of invoices for loan requests, as they lack access to electronic invoicing systems and rely on creditors' good faith, leading to potential misuse of invoices for multiple loans.
Innovation Solution
An invoice verification software tool is provided with access rights to the creditor's reserved area on the electronic invoicing system, which automatically verifies and certifies the invoice's existence by uploading a file to a blockchain, ensuring the lender's technical guarantee of the invoice's validity and preventing multiple loans on the same invoice.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the lender relies on the creditor's good faith to verify invoice existence, then the lending process is simple and quick, but the reliability of invoice verification is poor and fraud risk increases
Solution Approach 1:
The patent introduces an electronic invoicing system as an intermediary between the creditor and lender. This system automatically verifies invoice existence through digital registration and provides cryptographic proofs, eliminating the need for manual verification while ensuring reliability. The intermediary system handles the complexity of verification, allowing the lending process to remain simple for users.
Solution Approach 2:
The patent replaces manual, trust-based verification mechanisms with automated electronic verification systems. The electronic invoicing system uses digital signatures, cryptographic hashes, and automated database queries to verify invoice authenticity, substituting human judgment and manual document checking with automated technological processes that ensure reliability without increasing user complexity.
2Reliability
If the lender conducts thorough checks to verify invoice existence, then the fraud risk is reduced, but the lending process becomes slower and more complex
Solution Approach 1:
The patent implements preliminary verification by requiring creditors to register invoices in the electronic invoicing system before submitting loan applications. This advance registration ensures invoice authenticity is verified before the lending decision process begins, allowing lenders to quickly confirm invoice existence without conducting lengthy investigations during the loan approval process.
Solution Approach 2:
The patent replaces slow, manual verification processes with automated electronic checks. The system uses cryptographic proofs, digital signature verification, and automated database queries to instantly confirm invoice authenticity, reducing verification time from potentially days to seconds while maintaining high fraud prevention capability.
3Quantity of substance
If multiple lenders can process loan requests based on the same invoice, then the creditor's liquidity is improved, but the risk of multiplied loans exceeding the actual claim increases
Solution Approach 1:
The patent implements a feedback mechanism where the electronic invoicing system notifies all lenders about existing loan requests and disbursements related to a specific invoice. When a lender processes a loan, the system automatically updates the invoice status and informs other lenders, enabling them to see how much of the invoice amount has already been advanced. This feedback loop prevents multiplied loans from exceeding the actual claim while still allowing multiple lenders to participate.
4Measurement precision
If the lender has access to the electronic invoicing system, then the verification accuracy is improved, but the system complexity and access requirements increase
Solution Approach 1:
The patent creates simplified copies or representations of invoice verification data that can be accessed by lenders without requiring direct access to the complex electronic invoicing system infrastructure. The system generates verification certificates, cryptographic proofs, or standardized data formats that lenders can process with simple tools, achieving high verification accuracy without requiring lenders to maintain complex system access.
Data Source
AI summary
A method for requesting an advance invoice and/or assignment of the receivable to a lender comprises issuing an invoice related to a receivable to be collected that is registered in an electronic invoicing system. An invoice verification software tool is provided, which is given access rights to the area of the electronic invoicing system reserved for the creditor. A request for verification of the uploaded invoice is then entered into the verification software tool. The verification tool analyses the existence and data of the invoice in the electronic invoicing system, and certifies the outcome of the verification. The certificate obtained is attached to a request for an invoice advance and/or assignment of the receivable submitted by the creditor to the lender.