P2Binvestor helps bank the Unbankable Small Middle Market companies


Let’s face it, if you are a small Mom & Pop business and you need a new pizza oven or a new washing machine for your business, where can you find $20K quickly?  There are now many sources for small business lending – OnDeck, LendingClub, Prosper, Funding Circle and many online merchant cash advance platforms as well. But what if you are $10M company and you require a $500K or $1M revolving line to help finance new orders or inventory? Most marketplace small business lenders cap out at around 100K on their loans.  And invoice auction sites generally are not […]

The $3 Billion Broker in Trade Finance no one has heard of – Payables.X


According to International Asset Transactions LLC (IAT), they have been dedicated to making illiquid (non-tradable) financial assets tradable since 1988.  IAT claims to have pioneered making  trade receivables accessible for traditional capital markets investors through their Short-Term Depositary Receipts (“STDRs”)   program and states this program has provided liquidity for the receivables of suppliers of over 60 major investment grade companies worldwide (Buyers) including companies such as 3M Co, Abbott Laboratories, AT&T, Anheuser-Busch InBev NV, Apple, Baxter, and many more. They claim to have completed $3.0 billion of depositary receipt programs since their inception with an estimated secondary market trading volume […]

Streamline Your Supply Chain Finance Request for Proposal (Part 4)


This is a continuation of yesterday’s post which discussed factors in a Request for Proposal for Supply Chain Finance.  Today we look at Execution, and in particular, supply chain finance onboarding. Many companies I have spoken to me about their supply chain finance programs complain to me that the supplier onboarding side can inhibit success in achieving utilization.  I hear comments such as, The supplier onboarding process is a bit cumbersome with our smaller suppliers and detracts from many companies coming on to it. They see it as too complicated and interferes with existing banking arrangements. When it works well, […]

Streamline Your Supply Chain Finance Request for Proposal (Part 3)


This is a continuation of last weeks post which discussed factors in a Request for Proposal for Supply Chain Finance Another key consideration in evaluating service provider proposals is your geographic scope.  I mean if you are looking to roll-out a program in North America or Europe that is one thing, but what about India, Brazil or China?  The ability to have the geographic reach – local onboarding, local currency, local understanding of cultures and practices, etc. to deploy programs where the best bang for your buck is going to be (ie, emerging markets that are struggling for access to […]

I Am Tired of Bullshxx Surveys


Phil Herscht over at Horses for Sources  had a major rant about service providers subjected us to Powerpoint hell. He rants, I don’t believe I’ve ever witnessed a time our services “industry” has descended into such a mind-numbing pattern of meaningless marketing hype and unintelligible bullsh*t.  It was bad enough when everyone was painting pretty pictures of “transformation” to sugar-frost labor arbitrage deals, but at least we could understand the bullsh*t and detect its scent a mile away Today, we’ve fallen even deeper into a trough of verbose desperation, as most service providers and advisors replicate each others’ sales decks […]

Facilitate Your Supply Chain Finance RFP Process – Post 2


Yesterday we looked at one of the three “E”s in the Supply Chain Finance RFP process – Education. Today we look at Establishment and in particular, the single bank, multi-bank, or platform provider issue. Program Establishment The first big issue to deal with is what is the most appropriate funding model. Do you want to self-fund some or all of your suppliers’ receivables? Do you want to work with a single relationship bank? Or do you want to have a few relationship banks involved? Do you want an agnostic Funding Model or one managed by a platform provider (who can […]

Facilitate Your Supply Chain Finance RFP Process


By now, literally 100s of companies have implemented some form of approved invoice Supply Chain Finance scheme.  While program and contractual details are held private, the process to put a program in place and select platform partners can be quite tedious. I have seen companies go out with a 50 page questionnaire.  The time and effort involved on all parties to respond to the request is massive. Quite simply, the purpose of a Request for Proposal (RFP) is to obtain information to assist in evaluating the Supply Chain Finance initiative to meet your objectives.   Based on my observations and direct […]

Inventory Finance – Not for the Faint of Heart


I recently spoke to a 35 year veteran of the inventory finance space to discuss any new initiatives here.  According to this veteran, there are not many standalone inventory lenders doing deals between $500k to $5M that are bankable.  Most of the banks do not touch this stuff.  These are the kinds of deals where you have a company that does $10M in revenue across 7 retail stores and the banks won’t give them financing.  Their inventory is hard to value and they continue to lose money as they build brand. There are firms that will help companies borrow against […]