Basware is entering another transformation. Spend Matters has noted before that the Finland-based procurement solutions provider doesn’t “enjoy sitting still.” That’s proven true again with the company’s latest announcements to redefine its business strategy for the next two years to focus on expanding its procure-to-pay (P2P) and e-invoicing solutions and its new financing services as well as increase overall revenue growth.
Category Archives: Trade Financing
There are few technology companies that are doing anything terribly creative when it comes to connecting buyers and suppliers on a transactional basis outside of basic e-invoicing, aside from various tricks involving the onboarding of vendors and enabling downstream activities such as early payment and trade financing. But one vendor stands apart when it comes to pushing the limits of what buyer/supplier connectivity means today by redefining electronic data interchange (EDI) and going far beyond the basics of invoicing alone in a supplier network environment. The provider in question, Nipendo, is exciting on multiple levels, although its reputation has not yet caught up with its capabilities (something we’re hoping to help them remedy with our coverage). One can look at Nipendo as a new type of infrastructure-as-a-service (iPaaS) provider such as MuleSoft or DellBoomi, except one more narrowly focused on trading partner connectivity (primarily involving procurement, suppliers and potential financing partners). In late December I ventured to Israel and took a detour from my trip to spend half a day at Nipendo’s headquarters and explore the latest from this disruptive provider. This two-part Spend Matters PRO brief provides a functional, product and company update to our past coverage of Nipendo, including a look at the provider’s new portal interface.
Taulia reported record fourth quarter results Monday, with new bookings growth up 219%. The financial supply chain solution company said the new customers it gained in the fourth quarter will add 50,000 suppliers in 71 countries, as well as $65 billion in spend to the existing Taulia platform. Additional milestones for Taulia in Q4 included making more than $50 billion in financing available to suppliers across the globe and retaining its 100% customer renewal rate.
Taulia announced Thursday it raised $46 million in financing, which Spend Matters sees as encouraging news for 2016. The recent Series E financing was led by Zouk Capital. Taulia said the new investment allows the financial supply chain to “accelerate its rapid expansion,” the company’s press release stated. It also brings total funding for Taulia to more than $130 million.
E-invoicing and purchase-to-pay solution provider Basware and European-focused alternative asset manager Arrowgrass Capital Partners LLP have teamed up to introduce a new company: Virtaus, which Spend Matters UK has called “a significant new supply chain finance product.” Virtaus will manage Basware Advance, which can help organizations gain visibility into the payment process, offering better control over cash flow.
Looked at from an industry perspective, dynamic pricing and auction mechanisms have become the awkward middle child of procurement, supply chain and trade financing technology. What used to be the centerpiece of business models has become a secondary component of most procurement suites and technology models — or is downplayed as a feature rather than something at the core. To me, this is a shame.
In this Spend Matters PRO article, we explore what the Basware Commerce Network delivers, going beyond improving the e-invoicing and procure-to-pay process alone. Basware is making some major bets on supply chain finance (definitionally speaking in our vernacular: trade financing) as the centerpiece of its future network value proposition. But will Basware succeed where Ariba and SAP to date have not yet driven financing liquidity outside of the occasional transaction in which early payment is affected? It’s a tricky question to answer, but Basware is throwing multiple irons into the financing, payments and working capital fire.
Even though my colleague David Gustin covers such topics in much greater detail on Trade Financing Matters, I find fascinating the early fronts that appear to be forming in the battle for lending and small business financing — beyond the traditional arms of banks, invoice discounting and card programs. The Wall Street Journal recently covered how Intuit’s QuickBooks and OnDeck are partnering to offer loans based on invoice information, receivables and other information contained within a company’s general ledger on the system.
Back in early 2014, Trade Financing Matters’ David Gustin noticed some major changes in the supply chain finance space. Banking and financing firms were increasingly partnering with various supplier B2B networks at a rapid pace. He pointed to this growing trend in one of our popular Ask the Expert webinars, which originally aired in April 2014, titled, Ask the Expert: B2B Commerce Networks Enter the Supply Chain Finance Space. You can check out the full recording of the webinar in this post and learn the difference between trade credit and trade finance and what exactly supplier networks are, how they operate and more.
Trade financing is a broad-based term we can use to encompass a range of receivables financing and payables financing techniques. The difference between the 2 types is relatively simple: Vendors are in control with receivables financing program, and payables financing programs are buyer-led. There are a range of common areas of trade financing programs today outside of global trade-centric programs and products. These include: supply chain financing (i.e., an uncommitted credit facility, typically with companies at or near an investment-grade credit rating), dynamic discounting, reverse auctions and auction marketplaces, buyer-led invoice finance, p-cards, seller auctions, factoring and invoice finance. For further information and definitions of these programs, download the Spend Matters Perspective: Understanding How E-Invoicing Fits.
On this Flashback Friday, we are looking back to another popular Ask the Expert webinar we held back in April on current trends in trade financing. Spend Matters’ Jason Busch and Trade Financing Matters’ David Gustin teamed up in Ask the Expert: The State of Trade Financing Technologies to provide an impressively detailed overview of what’s happening in the trade financing world and how these events are signaling a changing market – all in under 30 minutes. Check out the full recording of the webinar and tell us if you have seen these trends play out during the second half of 2015.
I have spoken at many conferences over the years, and people ask all the time what conferences to attend. The answer is always the same – it depends. A conference like Lendit can draw 2,500 people today, given the hysteria with all things fintech. Traditional lending conferences, however, struggle to get 1,000 at their annual events. I find some of the best conferences come when the material is focused and flows – they don’t try to cover the world. Instead, they come at it from a practitioner's point of view and minimize the number of consultants giving presentations.
The latter approach will be on display at Exchange Summit 2015, at which I’ve been invited to give one of the keynotes. Given the expectations and sophistication of the audience, the pressure will be on to deliver insights that matter.