We’re thrilled to announce the launch of the latest Spend Matters Network site: Trade Financing Matters (TFM). TFM is a joint effort and venture between the Spend Matters team (including Jason Busch, Pierre Mitchell and Thomas Kase) and David Gustin, a world-renowned expert in the world of trade financing. The plan for Trade Financing Matters is to combine the existing Spend Matters procure-to-pay (P2P) coverage with David’s existing body of research and extensive network gained through managing Global Business Intelligence, a trade financing research and advisory firm. David will serve as Managing Director and Editor of Trade Financing Matters.
Our mission is simple: discuss the issues related to the convergence of banking/finance with supplier networks, e-invoicing, eProcurement, P2P, and order-to-cash technologies. Trade Financing Matters will focus on the financial supply chain and its intersections with purchase-to-pay platforms, technologies, and processes (and broader procurement, accounts payable, treasury, and related functional areas). Payables Finance and Receivables Finance will form the core of the coverage.
Why did we start TFM?
Put simply, trade credit is something that no one notices when it’s working well. But take it away, and supply chains are disrupted. In today’s environment of tight credit, widening pricing, changes in banking regulations, and emerging technologies, corporates, banks, vendors, and others involved in facilitating credit, whether under the guise of trade credit, trade finance, working capital, supply chain finance, factoring, or asset based lending, need to better understand each other and the changing landscape.
TFM is written for CFOs, treasurers, credit managers, procurement professionals, suppliers, bankers, and others dealing with the myriad trade credit issues in their supply chain. Our mission is to engage with a steady stream of top-quality, progressive, and original commentary.
From a Payables Finance perspective, our coverage will span:
- Accounting Treatment
- Supplier Onboarding
- Reverse Factoring
- Technology & Platforms
- Bank Financing
- Dynamic Discounting
- Trade Payable Finance, Reverse Factoring and Supply Chain Finance
From a Receivables Finance perspective, we will address:
- Credit Risk Management
- Accounting Treatment
- Letters of Credit
- Trade & Commodity Finance
- Invoice & Receivable Finance
- Technology & Platforms
- Supply Chain
- Asset Based Lending
- ECA Finance
- Legal & Regulatory
Discounting and supply chain finance have become industry buzzwords and CFOs / treasurers of corporations are increasingly responsible for Supply Chain finance solutions (not A/P and procurement alone). These terms represent exciting areas that sit at the nexus of finance and procurement, although adoption (especially in North America) has been sporadic. UK and European penetration of factoring and related areas has been stronger to date.
But there’s a general confusion as to how SCF works and the roles of different players. For example, today's buzzwords include reverse factoring, vendor financing, payables financing, receivables purchasing, and trade payables backed financing, which all tend to be variations on the theme of the umbrella term supply chain finance.
There are many benefits for procurement becoming more involved in discounting and payables, beyond just leveraging one’s balance sheet to provide financing and to earn a solid APR. One benefit, for example, is overall control and oversight of the end-to-end transaction with suppliers to reduce risk.
Yet programs to date have typically been disconnected from broader eProcurement and e-invoicing enablement. Early examples (e.g., Taulia) of integrated discounting programs with procurement and accounts payable systems (and ERP) show the promise of wide scale supplier uptake of financing when available and convenient. Moreover, the Tungsten IPO – which brings together a supplier network and a bank, among other capabilities – also promises to further the growth of this market.
We invite the broader Spend Matters Network community to join us as we explore the market for trade credit and finance through Trade Financing Matters. We’re extremely appreciative of Nipendo for serving as our first Lead Sponsor of Trade Financing Matters.
If you’d like to get in touch with our team, don’t hesitate to reach out.
In the meantime, welcome to Trade Financing Matters.
David Gustin (Managing Director): dgustin (at)globalbanking (dot) com
Jason Busch (Managing Director): jbusch (at) spendmatters (dot) com
Pierre Mitchell (Managing Director and Chief Research Officer): pierre (at) spendmatters (dot) com
Sydney Lazarus (Assistant Editor): slazarus (at) spendmatters (dot) com
Commercial / Advertising Contacts
Lisa Whalen (VP, Business Development): lwhalen (at) spendmatters (dot) com
William Busch (VP, Client Services): wbusch (at) spendmatters (dot) com