Author Archives: David Gustin

Sizing Up Tungsten’s Numbers: Invoicing and Trade Financing Market Implications

- June 1, 2015 2:23 AM | Categories: Finance, Industry News, Trade Financing

1202141-2590-D31A-404E6034C9DED1CD Two weeks ago saw a material drop in Tungsten’s stock price (over 20%) – a trend that continued early the following week – only to be reversed after a secondary offering that provided support for the stock (at the time of writing, the stock price had rebounded 25% off of its lows). But the initial downward stock movement almost has seemed detached from the revenue results of the business, which the firm said would beat guidance. However, there is other news in the story – much more news, in fact, which is far more interesting than the high-level numbers, or even the stock drop or appreciation. Moreover, just as Ariba was an important stock to watch as a proxy for the sector – and which we profiled when it was independent during most quarters – so, too, is Tungsten in the supplier network and technology-led trade financing market. In this Spend Matters PRO analysis and research brief, we consider some facts and figures surrounding Tungsten’s results and how we read into them from an overall market perspective spanning e-invoicing, invoice discounting and supplier network capabilities.

more ▸
 

How Unsecured Payable Facilities Help With Bulk Purchase Discounts

- March 18, 2015 8:17 AM | Categories: Procurement Strategy & Planning, Trade Financing

calculating-calculation-calculator-3305 Procurement organizations may be able to take advantage of volume discounts or quarter-end spends with their largest suppliers – if they can make it happen. Procurement may not be able to get the funding to make this a reality as treasury may not want to tap into its revolving credit facilities. So what are you to do? Check out the full article over on our sister website, Trade Financing Matters.

more ▸
 

Pushing Early Pay Opportunities To All Suppliers

- March 6, 2015 6:17 AM | Categories: Suppliers, Trade Financing

Pay-Off Regardless if the US government's SupplierPay initiative is successful or not, many Global 2000 corporations have developed a menu of early pay solutions. Buy-side techniques are centered around payable finance methods. Purchase-to-pay, e-procurement, e-invoicing and supplier network propositions are becoming more established together with early pay finance techniques. Large global corporations that use these networks to manage suppliers will enable their suppliers to receive early payment.

more ▸
 

Should You Be Using the Renminbi To Buy From Your Chinese Suppliers?

- February 27, 2015 2:07 PM | Categories: Trade Financing

0201154-2590-D31A-4091769B0258659C Why should more multinational corporations consider invoicing and selling using China’s currency the renminbi (RMB)? Trade Financing Matters published an article this week on the subject. Check out a snippet of what the article is about here, or read the full story on TFM.

more ▸
 

Webinar: Spirit of the SupplierPay Pledge Still Alive?

- February 20, 2015 8:24 AM | Categories: Learning / Research, P2P, Supplier Management, Trade Financing

Join us on Thursday, Feb. 26, 2015 at 12 p.m. CST to get an update on SupplierPay, discuss thoughts on how the government can push the SupplierPay Pledge and show how one vendor can help with all expenses, not just indirect. Register here!

more ▸
 

Everything You Thought You Knew About Taulia and Tungsten is Wrong

Screen Shot 2015-01-15 at 4.05.36 PM A bunch of folks on the Spend Matters analyst team have collectively spent thousands of hours in the past year digging into the intersection of receivables financing, payables financing and purchase-to-pay (P2P). We’ve explored vendors from all sides, including Taulia and Tungsten. Read on to hear the "myths" and the reality behind these two companies.

more ▸
 

How Intercompany Spend Influences Working Capital

- December 24, 2014 2:17 AM | Categories: Guest Post, Trade Financing

In the world of spend analysis, intercompany trade is an important distinction for a number of reasons. As opposed to non-related party trade, intercompany trade impacts working capital, cash management, accounting issues and payments in very different ways. We know many Fortune 2000 companies trade with their subsidiaries in other jurisdictions around the world. The US Census Bureau and the US Department of Commerce collects data that reveals related-party trade accounts for more than 40% of total goods traded. So it matters, and the distinctions matter. Check out this full article at our sister site Trade Financing Matters.

more ▸
 

Should Middle Market Companies Consider Supply Chain Finance?

- December 18, 2014 2:12 PM | Categories: Guest Post, Supply Chain, Trade Financing

Approved trade payable finance/reverse factoring programs – otherwise known as supply chain finance – have been the domain of the investment-grade or near-investment corporations. But as many bankers compete on price for these programs and the market becomes saturated with solutions (i.e., most big credit quality companies have probably heard 10 or more bank pitches), the question becomes what about the middle market? Can programs work with this segment? Check out this article at our sister site, Trade Financing Matters.

more ▸
 

2015: A “Banner Year” for Invoice Discounting

- October 22, 2014 2:13 AM | Categories: Analysis, Invoicing

Invoice discounting is about to hit the afterburner with significant program acceleration inside existing accounts as well as new program implementation and adoption in 2015. In the second installment of this two-part Spend Matters PRO research brief, Jason Busch, founder and managing director, Pierre Mitchell, chief research officer and managing director along with David Gustin, managing director of Trade Financing Matters, explore 10 reasons for this growth. Part 1 of this series included reasons 1-5. In Part 2, we cover reasons 6-10.

more ▸
 

10 Reasons Why 2015 Will be the Year Invoice Discounting Growth Hits an Inflection Point (Part 1)

- October 20, 2014 6:28 AM | Categories: Analysis, Invoicing, P2P

There. We’ve put a date on it. 2015 will be the year invoice discounting growth hits a true inflection point with many procurement and A/P organizations finally moving away from poorly managed static payment terms. What type of growth are we talking about? At Spend Matters, we would argue that from a relative dollar standpoint (i.e., discounts captured based on dollars advanced early to suppliers), we will see in excess of 25% growth from programs in 2015 within the Global 2000. There are many elements coming together to create what we view will be a banner year in 2015 for invoice discounting. In this two-part Spend Matters PRO research brief, Founder and Managing Director Jason Busch, Chief Research Officer and Managing Director Pierre Mitchell along with Managing Director of Trade Financing Matters David Gustin explore 10 of them.

more ▸
 

Basware and Arrowgrass Go After Non-Confirmed Invoice Market

- October 14, 2014 1:29 PM | Categories: Guest Post

Spend Matters welcomes this article originally published on our sister site Trade Financing Matters. Basware recently announced its financial offering, a suite of supply chain finance capabilities that are both buyer and seller driven. One is called Basware Factor, and the company is partnering with Arrowgrass Capital Partners, a $5 billion London hedge fund, to develop an electronic invoicing service in the latest move to capture business credit that has stayed on corporates balance sheets in the form of payment terms.

more ▸
 

For Investors, ICC’s 2014 Trade Register Report Lacks Credibility

- July 1, 2014 4:20 PM | Categories: Trade Financing

I know I won’t be popular with this post, but I never choose the popularity route. To me, I’ll take quality over quantity any day. And so I have to point out that I think the 2014 International Chamber of Commerce (ICC) Trade Register Report has a ways to go. The report concluded trade transactions for all intent and purposes have practically zero losses. That’s right -- zero losses. The problem is that the people who matter don’t believe it. Who matters? Well, investors matter. And if investors don’t find your data credible just because the banks say so, then they will buy something else.

more ▸