RLFactor

An XRPL‑based invoice marketplace that helps SMEs unlock cash flow by auctioning tokenized invoices, giving businesses faster access to capital without intermediaries.

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Inspiration

Our inspiration for RLFactor comes from very close to home. Several members of our team have parents who run small and medium‑sized enterprises (SMEs), and growing up, we frequently witnessed the same recurring challenge: cash flow problems caused by delayed invoice payments.

Despite having steady business and confirmed clients, these businesses often had to wait 30–90 days to get paid. During that time, they still needed to pay rent, salaries, suppliers, and operational expenses.

Inspired by these real experiences—and similar stories shared by fellow entrepreneurs around us in university—we set out to build RLFactor as a practical solution to a common and deeply impactful problem.

What it does

RLFactor is a platform that helps small and medium‑sized businesses (SMEs) access liquidity earlier by turning unpaid invoices into on‑chain assets.

Instead of waiting 30 to 90 days to be paid, businesses can tokenize an invoice as an NFT and list it on a marketplace. Investors can purchase these invoice NFTs at a discount, providing immediate cash to the business. At invoice maturity, the party holding the NFT receives the full face‑value payment. This creates a transparent, non‑custodial alternative to traditional invoice factoring.

How it works

High-Level Flow

  1. An establishment mints an Invoice NFT on the XRP Ledger representing a real-world accounts receivable with a fixed amount and maturity date.
  2. The Invoice NFT is listed on an on-chain auction marketplace with a defined bidding period.
  3. Investors place bids using an issued stable token (RLUSD-style, testnet/mock), with bids secured via XRPL escrows.
  4. At auction close, delivery-versus-payment (DVP) is executed: the highest bidder receives the NFT and the seller receives payment.
  5. Upon NFT maturity, the current NFT holder is entitled to receive the underlying payment from the originating establishment, completing the settlement of the tokenized real-world asset.

This flow mirrors real-world invoice factoring, while ensuring ownership, bidding, and settlement are enforced transparently on the XRP Ledger.

Overall Flow Diagram

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How we built it

We built RLFactor using a modern web and blockchain stack:

  • React for the frontend user interface

  • Node.js for backend logic and API orchestration

  • PostgreSQL to store user information, invoice records, and marketplace data

  • XRPL (XRP Ledger) libraries to handle NFT minting, issued token payments, trustlines, escrow, and wallet interactions

We adopted a user‑centered design approach, focusing on how SME business owners would realistically use the platform in their day‑to‑day operations.

Core Features

Invoice Real World Asset Tokenization (NFTs) What it does: Converts real-world invoices into unique on-chain assets (NFTs) that represent the right to receive future payment.

Auction‑Based Marketplace What it does: Allows invoice NFTs to be listed and auctioned so businesses can access liquidity earlier.

Non‑Custodial Wallet Authentication What it does: Allows users to authenticate and transact without sharing private keys.

Issued Token Payments & Trustlines What it does: Enables stable-value bidding and settlement for invoice purchases.

On‑Chain Ownership & Settlement What it does: Ensures the current NFT holder is always the party entitled to receive payment at maturity

Challenges we ran into

  1. Understanding XRPL escrow mechanics

  2. Designing the NFT minting and transfer process

  3. Handling ownership transfer during auctions

  4. Separating off‑chain marketplace logic from on‑chain enforcement

Accomplishments that we're proud of

  1. A clean, usable, and polished frontend

  2. Resolving most major technical challenges

  3. A working end‑to‑end MVP

  4. A fully non‑custodial design

What we learned

  1. How XRPL escrow works in practice

  2. Establishing trustlines for issued tokens

  3. Using wallets for authentication and transactions

  4. Designing systems that cleanly combine on‑chain and off‑chain logic

What's next for RLFactor

Next, we plan to run a test pilot with SMEs, refining the platform with real business feedback.

Our longer‑term goal is to help SME owners better afford operational expenses, reduce cash‑flow stress, and grow sustainable businesses.

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