How does Troc Circle work?

Troc Circle is an easy, secure, and fast netting platform that proposes group deals by offsetting receivables with payables. In the left example underneath: the Hotel owes the insurance company $10.000, the insurance company owes the factory $15.000 for raw material, and the factory owes the hotel $5.000 for a stay of their employees. Our algorithm is programmed to recognize this as a financial circle where $5.000 can be netted out of every party’s owed amounts. The remaining result will be the right example underneath, where the total receivables have increased by 3 x $5.000 = $15.000 and simultaneously the total payables have decreased by 3 x $5.000 = $15.000. Although no actual money has been moved, the total debt in this financial circle has decreased.

This in the end reduces the amount of money that needs to be transferred between the actors of the circle - resulting in a faster payment and lower bank commission.

$5,000 CAN BE NETTED OUT OF THE FINANCIAL CIRCLE

As a result, the quantity and amounts of pending transactions for the three actors in the circle have been reduced. Thus, when the Hotel and the Insurance make their due payments of $5.000 and $10.000 respectively, their transaction (and potential currency conversion) fees will be reduced as well, for these are based on a percentage of the total transferred amount. In short Troc Circle reduce the risk of bad debt.

Handling not complete financial circles ( payment chain netting ).

Troc Circle works on an upgrade of the algorithm where it can play by itself a closing role in a financial circle. In the example you can see that DZ Bank and Stripe are not forming an actual circle by themselves, but Troc Circle is playing a middle role in order to complete the circle and perform the reducing of costs between the actors.

Troc Cricle security measures

  • Troc Circle does not move any money around: so there is no risk of losing money because of a transaction error.
  • No user ever gets paid without paying at the same time: every receivable is always offset by a payable of the same amount.
  • 2 checkpoints before any netting deal: both parties need to accept the validity of a transaction and all users implicated in a financial circle have to accept a proposed netting deal before it settles.
  • Users can go back and delete any invoice or promise to pay: at any time before all implicated users have accepted a netting deal.
  • Troc Circle does not disclose your business partners: your clients and suppliers identity and data are kept private.
Planned
Algorithm update for partial financial circles
Troc Circle works on an upgrade of the algorithm where it can play by itself a closing role in a financial circle. In the example you can see that DZ Bank and Stripe are not forming an actual circle by themselves, but Troc Circle is playing an middle role in order to complete the circle and perform the reducing of costs between the actors.
Extend the accountant functionality
Initially the account functionality is launched in a test phase, not implying any commissions, while the app and Troc Circle services are free of charge
Integrate online payment processors
Looking forward to integrate online payment processors.
Desktop application
Release of a desktop application for Windows and MacOS
Forwarding of invoices
We plan to implement the possibility to forward invoices between users in case you feel like not the right person to process the recurring payment.
In progress
Nightmode
Implementing the nightmode for iOS13
Prepare release of Beta 0.2
Formula optimisations
Working on improving the efficiency and precision of the formula
Done
Release of Beta Version 0.1
We went live and released the version 0.1 of our Beta app on the 25th of January 2020.