Work

Hybrid Digital Invoice Financing Model Based on Civil Obligations and Staple Food Inventory Collateralization for Traditional Market Merchants in Krui

Year: 2026

Type: article

Abstract: Background: Traditional market merchants in Krui, Pesisir Barat face structural working capital deficits stemming from paper-based invoices, fuel price volatility, and maritime transit hazards. Objectives: To construct a hybrid digital invoice financing model that combines Civil Code obligations (Articles 1320, 1338, 1243) with fiduciary collateralization over staple food stocks. Methods: Empirical legal-operational field survey across wholesale and retail merchants in Krui Market, supported by inventory turnover analysis and multi-party risk scoring. Results: Implementing verifiable digital invoice trails paired with staple food inventory liens mitigates default probability by 43.6% while compressing working capital cost from informal 35-40% spreads down to single-digit operational benchmarks. Conclusion: The framework provides enforceable legal certainty under Indonesian civil contract jurisprudence, transforming high-risk informal merchant credit into viable supply chain finance assets for regional institutional capital. Published in Journal of Coastal Frontiers and Applied Development (JCFAD). CERN Zenodo Record: https://doi.org/10.5281/zenodo.24028618. Publisher: PT CHAIN ASIA CONECT Research and Development Division.

Source: Open Science Framework

DOI: 10.17605/osf.io/38h4m

Author: ILHAM PRADANI

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W7225432072

FWCI:

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