After giving shareholders an 85% haircut from their trading highs, Tungsten decided to unwind one part of their original IPO strategy – buying a bank […]
“You mean my supplier doesn’t appreciate the fact he can check my portal about payment status? “Comment from Fortune 500 company APEX Analytix completed a recent […]
I’ve been invited to give one of the keynotes at Exchange Summit 2015 in Barcelona. Given the expectations and sophistication of the audience, the pressure […]
Last week I wrote a piece around how the middle market struggles to find a fit with eInvoicing. A recent study by HSBC Hidden Impact […]
I’ve recently talked to a number of companies under $1 billion and know how much they struggle with creating a digital world for their supplier ecosystem. They […]
Step back from the current craze around all the new financial technology solutions for companies to access cash, from e-procurement and e-invoicing solutions to marketplace lending and supply chain finance, and try and think about this from a logical basis – from the perspective of the supplier. You want to pay early. But by the time you figure out how to get it from all these solutions, you’ve logged into half a dozen or more solutions every day that are not directly integrated into your systems. You may even have to hire a few staff. Clearly, this is an area that deserves more attention, which suggests it might move to embracing a supplier-led ecosystem as well.
On Trade Financing Matters, I’ve been sharing a number of my thoughts in recent days LINK about some of the challenges and hurdles faced in driving greater adoption for third-party financing for invoice discounting and dynamic discounting, as well as some thoughts on what it will take to cross the chasm from corporate and treasury funded-programs. David Gustin, the managing director of Trade Financing Matters, could not sit still after reading what I had to say and decided to chime in himself. Below, I’ve featured a few of his thoughts on the challenges with non-bank funding for invoicing discounting and dynamic discounting models that leverage an approved invoice through an e-invoicing or supplier network connectivity service.
Yesterday, I covered some of the challenges surrounding the adoption of third-party financing across e-invoicing solutions and supplier networks. But perhaps the more important question is: What will it take for these solutions to cross the chasm from theory to action? I have some hypotheses. Either individually or collectively, it will be fascinating to see how these 5 scenarios come together.
As Tungsten recently reported in its financial results, the level of adoption for bank or non-bank intermediated financing through supplier networks and e-invoicing programs is still embryonic. Spend Matters and Trade Financing Matters estimate that more than 95% of invoice discounting and dynamic discounting programs that leverage an e-invoicing, supplier network or related platform capability currently rely on corporate self-funding to support such programs on a volume basis today. Finding a logical answer to why third-party adoption is low requires a deep dive.
World Bank, are you listening? Greece owes a lot of money to a lot of people, €360,000,000,000 to be exact. This is Greece's entire government […]
Richard Manson director of cloudtrade wrote an interesting piece the other week about suppliers being overlooked around einvoicing. The point of the piece was that […]