Send an invoice in order to collect your pending receivables. Troc Circle do not require much data that are usually included in an invoice. The only data required is the recipient you need to collect from, the amount and the currency you intend to collect. To send an invoice via Troc Circle app, follow the steps below:
The recipient will be immediately notified of the invoice you sent. The recipient has the choice to accept or reject an invoice, Troc Circle will notify you if the recipient accepted or rejected the invoice you sent him. Troc Circle also gives the option to attach a support document of the invoice you intend to collect.
Send a promise to pay in order to pay out your due payables. Troc Circle do not require much data that are usually included in an invoice. The only data required is the recipient you need to pay out to, amount and currency you intend to pay. To send a PTP via Troc Circle app, follow the steps below:
Troc Circle also gives the option to attach a support document of the PTP you intend to pay. PTPs are automatically accepted by the recipient you send money too; since a PTP is considered as a payment to the recipient.
Troc Circle allows users to save money in 2 ways:
By accepting netting deals on the App , users are not paying any transaction fee or any foreign exchange fee. On average when using other digital methods to get paid, a transaction fee would cost a seller 2% of the amount. Also when exchanging between multiple currencies the cost is around 1 - 4 %. Troc Circle saves you the transaction and FX fees and to this date do not charge any fee on netting deals.
Troc Circle increases the velocity of payments, a delayed payment would cost a seller around 1.6% for 30 days and this number goes up with longer delays. Troc Circle allows you to get paid instantly reducing your delayed payment cost. Troc Circle solution is better than factoring your invoices. Troc Circle is cheaper and faster than any factoring solution.
Troc Cirle algorithm searches for connections between all pending transactions. When a connection is found between 3 or more transactions, then a closed financial circle is formed. A closed financial circle allows netting to happen. Troc Circle will propose the netting deal to the users involved in the closed circle. Users will receive a notification every time a closed circle is found. Users can accept or reject the proposed deal. If all users involved in the circle accept the deal than netting happens instantly. Each new circle has a unique identification number generated by Troc Circle.
Receipts are generated by Troc Circle automatically every time netting happens. To access your receipts go to the app home page and select the transactions page. The transactions page includes a summarized ledger of all the receivables, payables and receipts.
The transactions page includes a summarized ledger of all receivables, payables and receipts. Each invoice sent by you will be automatically listed under receivables while every invoice you receive will be listed under payables. On the other hand when you send a promise to pay ( PTP) the transaction is listed under payables and when you receive a promise to pay it is listed under the receivables. For every receivable or payable, a status is clearly mentioned next to it. Here are the possible statuses:
The circles found on Troc Circle have an expiration time. Expiration time is set for 5 days. If a circle expires that mean that some users did not respond to the proposed deal. After expiration the algorithm will search for other circles that can net the pending transaction. No receipt is generated except if all users in a circle confirm the proposed deal. Expired circle are considered as null, as if they did not exist and have no effect on the pending transaction.
Netting is when a pending receivable cancels a pending payable. The netted amount is subtracted equally from a receivable and a payable. Through netting money is not moved, that is why Troc Circle do not need access to bank accounts or debit / credit cards information.
Circular netting is when we have 3 or more transactions (receivable or payable) forming a closed circle. Troc Circle uses circular netting to offset receivables with payables. Users do not have to move money around they only need to upload their transaction data in order to pay and get paid at the same time.
Notifications are generated automatically by Troc Circle in order to inform users about their transactions statuses. Notifications are sent via the mobile app and also via emails. It is important to keep the users informed and connected about their transactions.
When someone sends you a promise to pay (PTP), it is automatically registered in your transactions as accepted. Since a promise to pay means that you will receive a future payment and can only affect your cash flow positively.
All transactions registered on Troc Circle are kept confidential. Even when a circle is found that can net out your transaction, you have access only to the transactions related to you only. You can’t have access to other users’ identities or transactions even if you are connected in the same circle. In brief, you would know your first degree suppliers or clients only and you won’t know the clients of your clients or the suppliers of your suppliers.
When sending an invoice or promise to pay (PTP) insert the total amount you expect to collect or pay including taxes, if you want. For each netted amount via Troc Circle you will receive a receipt from Troc Circle indicating clearly which receivable has offset which payable. In your accounting report, you can list Troc Circle netting service as the payment method. The receipt generated is the support document confirming the netted amount. Troc Circle is not responsible of your taxes, you have to continue paying your taxes according to your governments’ law and the method of your choosing.
Troc Circle gives you control over the process of verification of all invoices you receive. Users have the option to accept or reject an invoice. Before accepting an invoice the user has to verify the information and financials included in the invoice. If the user has any doubt about the invoice he simply has to reject it.