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

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 & Applied Development (JCFAD), Vol. 1 No. 1 (2026), pp. 1–12. Official publisher: PT CHAIN ASIA CONECT Research & Development Division.