FinToken XArchitectureSmall or Medium-sized Enterprise (SME) Seller

SME Seller

The small United Kingdom (UK) business with an unpaid invoice. Browser-led with email confirmations at every state change. The strictest gate set on the platform — most invoice fraud starts with a fake seller.

Coppergate Joinery Limited (Ltd)

Aisha Mahmood, Director · aisha@coppergate.co.uk · Yorkshire-based joinery, ~£3.2M turnover, 18 staff

Coppergate has just delivered a £10,000 fit-out to Northwind Retail public limited company (plc) on standard 60-day terms. They need the cash within five working days to cover wages and a timber order; their bank declined an overdraft extension last quarter; their existing factor takes 18% and six weeks of paperwork.

Channel
Browser Single-Page Application (SPA) + email
Gates
1, 2, 3 (mandatory Money Laundering Reporting Officer (MLRO) review)
Refresh
Identity 6mo · sanctions monthly
Code role
sme_seller

Flow map

Onboarding (O1–O5) runs once. Per-invoice (S1–S7) repeats for every receivable.

StepWhat the seller seesChannelState event
O1Sign up, choose roleBrowserSUBJECT_CREATED
O2Onboarding form (Know Your Business (KYB), Ultimate Beneficial Owner (UBO), banking, source of funds)BrowserONBOARDING_SUBMITTED
O3Identity verification (Sumsub doc + selfie)Browser → email confirmKYC_PASSED / KYC_FAILED
O4Risk & Anti-Money Laundering (AML) pass + MLRO reviewEmail + in-app statusRISK_PASSED / MLRO_APPROVED
O5Welcome — ready to invoiceEmail + dashboardSUBJECT_ACTIVE
S1Submit invoice (PDF + structured fields)BrowserINVOICE_SUBMITTED
S2Authenticity check (vision Optical Character Recognition (OCR) + duplicate scan)Auto, in-app statusINVOICE_VERIFIED
S3Buyer confirmation pendingBrowser banner + email when buyer confirmsBUYER_CONFIRMED
S4Tokenised + listed to lendersEmailINVOICE_TOKENISEDLISTED
S5Lender funds the invoiceEmail + dashboardINVOICE_FUNDED
S6Cash lands in seller's bankEmail + bank notificationADVANCE_DISBURSED
S7Buyer pays on the due date · settledEmail + dashboardINVOICE_SETTLED

Onboarding · O1–O5

First-time only. Roughly 24–48 hours from O1 to O5 if no escalation; up to 5 business days if Gate 3 sends the file to the MLRO queue.

O1 SUBJECT_CREATED Sign up, choose role
Aisha lands on the marketing site, clicks "Get started" and creates a login. After verifying her email she is routed to /select-role.
🔒 app.fintokenx.uk/select-role

Welcome to FinToken X

Pick the role that best describes you. You can have only one role per login.

Sell an invoice Selected

I run a UK business and want to get paid early on an invoice my customer owes me.

Confirm an invoice from a supplier

One of my suppliers is using FinToken X and asked me to confirm an invoice.

Fund invoices (lender)

I am a Financial Conduct Authority (FCA)-authorised firm or institutional lender.

Trade invoice tokens (investor)

I am a professional investor or eligible counterparty.

Routes: /signup/select-role. Choosing "seller" sets subject.role = 'sme_seller' and routes the next click to the seller onboarding form. Role is immutable after onboarding submission — to switch, the user creates a new account.
O2 ONBOARDING_SUBMITTED Onboarding form (Form A)
Five-step wizard at /compliance/onboarding/seller. KYB on the company, UBOs over 25%, banking details for net advance, source of funds, terms acceptance.
🔒 app.fintokenx.uk/compliance/onboarding/seller
FX
📊
📝
📁
Onboarding · Seller
Aisha M.

Tell us about Coppergate Joinery Ltd

Step 2 of 5 — Beneficial ownership

Companies House lookup
Company name
Coppergate Joinery Ltd
Company number
07452983
Registered office
Unit 4, Coppergate Industrial Estate, York, YO1 9NQ
Pulled from Companies House at 10:42. Active
Beneficial owners (over 25%)
Name
Role
Holding
Aisha Mahmood
Director
62%
Verified
Daniel Hartley
Director
38%
Pending
Wizard steps: 1) Company details (Companies House (CH) lookup) → 2) UBOs > 25% (UBO disclosure) → 3) Source of funds (free-text + dropdown of approved categories) → 4) Banking details for net advance (sort code + account, validated against the company name on Confirmation of Payee (CoP)) → 5) Terms + Data Processing Agreement (DPA) acceptance.
Validation: CH lookup must return company_status='active'; UBO holdings must sum to ≥ 75% disclosed; bank account name must Confirm-of-Payee match the company name.
State: on submit, onboarding.state = 'SUBMITTED' and the file enters Gate 1.
O3 Gate 1 KYC_PASSED Identity verification
Sumsub iframe captures Aisha's passport (or driving licence), runs liveness + selfie match, and posts the result back. Typical turnaround 90 seconds.
🔒 app.fintokenx.uk/compliance/onboarding/seller#kyc

Verify your identity

We use Sumsub to verify the Director on file (Aisha Mahmood) before activating your account.

Sumsub verification · iframe

Take a clear photo of your passport or UK driving licence, then a short selfie video.

📷 Document scan in progress…
Step 2 of 3 · Selfie match
What happens next

If everything checks out you'll see a green tick within minutes. Tougher cases are reviewed by a person and can take up to two business days.

Gate 1 result handling: Sumsub posts the decision to a webhook on /webhooks/providers/sumsub. On GREEN the subject moves to KYC_PASSED and Gate 2 fires immediately. On YELLOW the file goes to MLRO queue with provenance attached. On RED the subject is hard-blocked; the email reads "we could not approve your application" with no further detail (Proceeds of Crime Act 2002 (POCA) tipping-off prohibition).
O3 Email · identity confirmed
Sent within 60s of KYC_PASSED. Sets expectations for Gate 2 + Gate 3 turnaround.
O4 Gates 2 + 3 RISK_PASSED AML & risk + MLRO review
Aisha sees a status page while ComplyAdvantage screens the company and UBOs, the internal risk model produces a score, and (because sellers are mandatory MLRO review) Priya Lall signs off.
🔒 app.fintokenx.uk/my-application
FX
📊
📝
My application
Aisha M.

Application in review

FX-APP-77241 · Submitted 22 May 2026, 10:48

Check
Provider
Identity verification
Sumsub
Passed
Sanctions & Politically Exposed Person (PEP) screening
ComplyAdvantage
Clear
Risk score & review
FinToken X
In review
Account activation
Pending
What's happening now

Your file is with our compliance team for a routine review. We do this for every seller — it usually takes a few hours, sometimes up to two business days. We'll email you the moment it's done.

Risk inputs: CH age, UBO concentration, industry classification (joinery = Standard Industrial Classification (SIC) 4332), prior insolvencies on directors, geographic exposure. Score is LOW for Coppergate — but seller files are mandatory MLRO review regardless of score. State: SCREENING_PASSEDMLRO_REVIEWMLRO_APPROVEDRISK_PASSED.
Out of scope on this page: the MLRO sees the case in /compliance/mlro-queue — see compliance flow for that side.
O5 SUBJECT_ACTIVE Welcome — ready to invoice
Sent on RISK_PASSED. The CTA opens the invoice submission form. Dashboard now shows full nav.

Per-invoice · S1–S7

Repeats for every receivable. Happy path, with reference invoice FX-INV-23A4F (£10,000 to Northwind Retail plc, 60-day tenor, issued 22 May 2026, due 21 Jul 2026).

S1 INVOICE_SUBMITTED Submit the invoice
Aisha drops the PDF, types the buyer's Accounts Payable (AP) email, the amount, and the due date. PDF is OCR-scanned in the background while she fills the structured fields.
🔒 app.fintokenx.uk/invoices/new
FX
📊
📄
📁
Invoices · New
Aisha M.

Submit a new invoice

Drop the PDF — we'll fill the rest in.

📄
Invoice-23A4F.pdf
Uploaded · 217 KB · Scanning
Buyer (customer)
Northwind Retail plc
Verified Active on FinToken X
Buyer AP email
tom.whitfield@northwind.co.uk
Face value
£10,000.00
Due date
21 July 2026
Invoice reference (yours)
CG-2026-114
Estimated cash to you
Net advance
£9,760.00
FinToken X fee
£100.00
In your bank
£9,660.00
Estimate based on indicative lender pricing. Final figures shown once a lender funds.
Form route: /invoices/new wrapped in ComplianceGateGuard action="SUBMIT_INVOICE". Validation: face value > £500 and ≤ £250,000 (sandbox cap), tenor ≥ 7 and ≤ 120 days, buyer email domain not on the personal-email blocklist (gmail/outlook/yahoo are rejected — we only finance corporate buyers), face value < 25% of seller's 12-month declared turnover (concentration self-protection).
OCR: the PDF is shipped to a vision pass that extracts buyer name, line items, totals. We use OCR to cross-check the structured fields, never to replace them — if OCR disagrees with what Aisha typed, we flag the difference for her to reconcile before submit.
S2 INVOICE_VERIFIED Authenticity check
Auto, server-side. Four checks must pass before the buyer is contacted.
🔒 app.fintokenx.uk/invoices/FX-INV-23A4F/verification

FX-INV-23A4F · verifying

Northwind Retail plc · £10,000.00 · Due 21 Jul 2026

Check
OCR fields match what you typed
Pass
Line items reconcile to the total
Pass
No duplicate of an invoice already on the platform
Pass
Stamp / signature present (vision pass)
Pass
Verified — sending to your customer now

Northwind Retail will receive a confirmation email. Most customers confirm within a working day.

The four authenticity checks are the same for every invoice. Failure of any one routes the file to INVOICE_REJECTED with a plain-language reason for the seller. Duplicate detection is exact-match on (issuer subject, buyer subject, face value, due date) and fuzzy-match on the PDF hash and content fingerprint — we catch the case where someone re-exports the same invoice with a tiny edit.
S3 BUYER_CONFIRMED Waiting for buyer confirmation
Aisha sees a status banner; the meaningful action is on Northwind's side. Service-Level Agreement (SLA) budget: 3 working days. Reminder emails at +24h and +48h, then a phone-friendly nudge.
🔒 app.fintokenx.uk/invoices/FX-INV-23A4F

FX-INV-23A4F

Northwind Retail plc · £10,000.00 · Due 21 Jul 2026

Awaiting buyer
We've emailed Northwind Retail

Tom Whitfield (AP at Northwind) will get a one-click email asking him to confirm this invoice. Once he clicks, we'll match it with a lender straight away.

Email sent · Reminders scheduled at 24h and 48h

What confirmation means for your customer

Your customer is just confirming the invoice is real and they will pay it on the due date. They are not signing a finance agreement and they don't take on any new liability. They keep the same payment date — only the bank account changes.

Cross-flow: the buyer-side email and one-click experience live in the buyer flow. SLA branches: if no confirmation in 5 working days, the invoice auto-expires to INVOICE_EXPIRED and the seller is offered to resubmit (with a new reference); if the buyer rejects, the file moves to DISPUTED and is routed to compliance for review (a rejected invoice can be a sign of fraud — see compliance flow).
S4 INVOICE_TOKENISED LISTED Tokenised & listed to lenders
Sent automatically the moment the buyer clicks "confirm". Token mint + listing happen server-side; the seller never sees on-chain references.
What the seller does NOT see in this email (per money-control rule 10): no token contract address, no tokenId, no chain reference. The lender and admin sides do see those — see lender flow and backend § tokenisation. State on token mint: the receivable record gains a token_ref field equal to FXR-INV-23A4F and a chain-backed contract_address + token_id stored in the audit-only column.
S5 INVOICE_FUNDED Lender funds the invoice
Email plus a green status pill on the dashboard. The seller sees their final figures (rate from the lender, platform fee).
What the seller is shown: face value, lender discount (in £ and as a percentage so it reads natural), platform fee (in £ and percent), net to seller. What the seller is NOT shown (per money-control rule 1): the lender's identity. The seller knows "a regulated lender funded it" but does not see "Pennine Asset Management LLP" — this protects the lender's portfolio strategy and is consistent with how syndicated trade finance works in practice.
Disbursement mechanics: the lender disburses to a FinToken X bankable virtual account; FinToken X immediately routes net-of-fee to the seller's confirmed bank account. We never custody the seller's bank account; we hold a sub-second transit position.
S6 ADVANCE_DISBURSED Cash lands in seller's bank
Confirmation email tied to the inbound credit notification on the seller's account (Open Banking aggregate or Faster Payments confirmation, whichever comes first).
Reconciliation: S6 fires only when the inbound credit on the seller's bank is corroborated. We use Open Banking Account Information Service (AIS) where possible (instant); fall back to scheduled bank-statement parsing if AIS is not authorised. If after 4 hours we cannot corroborate the credit, an alert opens in /admin/incidents — the seller has the cash either way; this is internal hygiene.
S7 INVOICE_SETTLED Buyer pays · settled
On the due date Northwind pays £10,000 to FinToken X collections, FinToken X pays the lender, the token is burned, the audit log closes the file. Seller gets a courtesy email — there is no action for them.
What S7 actually does server-side (per money-control rule 9): inbound credit on the FinToken X collections account, narration matches FX-INV-23A4F within tolerance → reconcile → trigger lender payout via Faster Payments → on lender payout confirmation, mint a BURN transaction on the Ethereum Request for Comments 3643 (ERC-3643) token → write final audit entry. Buyer-side email saying "we paid" is never sufficient on its own; the bank credit is the source of truth.

Ongoing — what the seller sees between invoices

Most sellers will submit 2–10 invoices a month. The dashboard is designed to make this routine.

🔒 app.fintokenx.uk/dashboard
FX
📊
📄
📁
⚙️
Dashboard
Aisha M.

Coppergate Joinery Ltd

Welcome back, Aisha. Here's where you are this month.

Funded this month
£28,420
↑ +£12,000 vs Apr
Awaiting confirmation
£10,000
1 invoice · FX-INV-23A4F
Outstanding
£9,500
Due 28 Jun
Effective rate paid
3.4%
Avg over 12 invoices

Recent invoices

Reference
Customer
Face value
Cash to you
Status
FX-INV-23A4F
Northwind Retail plc
£10,000.00
£9,660.00
Awaiting buyer
FX-INV-22B1A
Halton & Crane Limited Liability Partnership (LLP)
£9,500.00
£9,165.00
Funded
FX-INV-21F88
Yorkshire Schools Trust
£18,920.00
£18,260.00
Settled

Where it can go wrong

Branches off the happy path. Each one has a state, a user-facing message, and an internal escalation path.

BranchWhat the seller seesStateEscalation
Buyer rejects the invoicePlain message: "Northwind Retail did not confirm this invoice. We've put it on hold while we check what's going on." No money has been transferred.DISPUTEDRouted to compliance — buyer-rejection is a fraud signal in this market.
Buyer doesn't reply within 5 Business Days (BD)Auto-expires; seller offered to resubmit with the customer's correct AP email.EXPIREDNone unless 3 expiries on the same buyer email — then routed to compliance.
Duplicate invoice detected"This looks like an invoice already on the platform. We can't fund it twice."REJECTED_DUPLICATERouted to compliance with both records linked.
Vision check fails (no stamp, lines don't reconcile)Specific repair instruction: "We can't read the totals on your PDF. Please re-upload a clean version."REJECTED_VISIONNone unless 3 failures in 30d — then routed to compliance.
Sanctions delta hits the seller (Gate 4)Seller can keep submitting until the alert is resolved — but new invoices are paused at S2.SUBJECT_FROZENAuto-routed to MLRO queue with FCA Suspicious Activity Report (SAR) clock started if criteria met.
Buyer pays late (S7 + 5 BD)Seller gets a courtesy "we're chasing" email; no action required of seller.PAST_DUEFinToken X collections kicks in. After 30 BD past due, the receivable enters DEFAULT — handled in lender flow.
Buyer disputes after confirming"Northwind Retail has flagged a problem with this invoice. Our team is in touch with both sides — we'll come back to you within 2 working days."POST_CONFIRMATION_DISPUTERouted to compliance with both confirmation evidence and the dispute payload.