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Ask HN: How do software platforms ensure money is transferred to lender?

4 points by m33k44 ↗ HN
I was wondering how do these platforms that allow businesses to sell their invoice/receivable on them ensure that the lender is paid back? What are the ways in which a software platform can ensure that money is redirected/transferred to the lender who purchased invoice/receivable? Is paper contract the only way to make it legally binding on the borrower to payback or is there some automatic way to redirect money to the lender?

2 comments

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Pavarotti
Going to need more specifics but it sounds like you're are describing a payment gateway.

https://en.wikipedia.org/wiki/Payment_gateway

m33k44
No, I am not describing payment gateway. I am talking about ensuring that a lender is paid by the borrower in future. The example I gave was of selling invoice/receivable. A borrower sells invoice to a lender. Once the invoice is paid by the customer of the borrower, then how does the software platform ensure that the money received from the customer goes to the lender and not to the borrower? Is it the responsibility of the borrower to transfer the money to the lender? What if the borrower does not transfer the money to the lender? Is the software platform responsible for that? In that case, how does the platform force the borrower to payback to the lender?