Oracle Acquires Textura — Tackling Payments and the Financial Supply Chain for Construction and More

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Oracle announced Thursday it agreed to acquire Textura, a cloud-based solution for the construction industry with end-to-end capabilities spanning from initial bid estimation and sourcing through to subcontractor management, communication and collaboration, invoicing and payment. The $633 million transaction values Textura at roughly 8X trailing revenue and represents an over 30% premium to the previous day’s close, a stiff price for a product that will complement one of Oracle's existing solution lines.

No Silver Bullet — Blockchain’s Future Impact on Trade & Supply Chain Finance

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I have been asked repeatedly by many banks about blockchain developments around trade and supply chain. Blockchain applications around global trade finance are being planned or piloted in a number of areas. Here is a sample: Global receivables marketplaces Intercompany money transfer Electronic letters of credit via smart contracts Supply chain and payables finance Multitier supply chain finance via tokens Bank boards are increasingly pushing management to go beyond just getting their names out in this new, cool fintech space. Many financial institutions have blockchain as part of their five-year plan, and some are aggressively acting now on pilots. Trade […]

The Infrastructure Layer – A Framework to Understand Business Credit Post 1

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Last week, we talked about how new models of business credit still require an understanding of the different layers that enable credit to occur. With new techniques ready to disrupt how businesses are financed, we need to think beyond just the technology that acts as a necessary enabler and get down to understanding what I call the infrastructure of credit. Think Blockchain. What is Blockchain? My colleague Jason Busch quoted this definition: “A peer to peer public ledger maintained by a decentralised network of computers that requires no central authority or trusted third parties”.  And right now there are several […]

Replacement + Additive Deals to Fuel Supply Chain Finance Market

Banks have historically been the dominate provider of both platform and funding of reverse factoring (commonly called supply chain finance) programs over the last decade. Even platform and managed service providers like Demica, Orbian and PrimeRevenue have historically relied on banks for balance sheets. But times are changing. In the past, many large Fortune 500 companies may have had a point solution, where their reverse factoring solution helped provide working capital improvement for a specific subsidiary or country. But increasingly, companies are evaluating more holistic solutions. TFM is starting to see that with deal cycles going on now. Click here to […]

New Models of Business Credit Still Require Understanding of Framework

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Understanding business credit should start with the different layers that enable credit to occur. Most of us like to jump to the latest finance technique without a consideration of how these layers fits into the collective business credit picture for a company.  Of course, depending on whether you are a micro business, a small business, a $500M distributor, or a global brand, access, pricing, and other considerations differ, but the underlying infrastructure issues do not. Over the next several posts, I will examine the infrastructure framework for business finance in the context of helping all of us navigate the changing […]

Global Business Intelligence Produces 4th Edition of Supply Chain Finance ebook

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Do we really need another supply chain finance book or publication? I wrote a post about how Supply Chain Finance (“SCF”) is the new plastics not long ago given the never ending stream of so much material being produced around this topic. But what is lacking IMHO in much of the supply chain finance stories is true unbiased content. Much of what is discussed with supply chain finance comes from a vendor pushing their solutions or consultants who do not have a corporate perspective or tend to think of supply chain finance as a technology problem. Or politicians that like […]

Bankers Do Not Understand Supply Chains — So How Can They Do Multi-Tier SCF?

It’s easy to discuss reverse factoring or some other supply chain finance technique from the standpoint of a credit product. But when thinking about supply chains, most bankers I know have a disconnect between how things are made and the credit risk they take to fund how things are made. To discuss trade and trade flows without having some fundamental understanding of how things are made is a dangerous game. I will give two examples below to demonstrate what I mean. Banking Does Not Understand the Value Chain of the Goods It Finances My argument here is quite simple. Understanding how […]

Exchange Summit Americas – From E-Invoicing to Supply Chain Financing

E-Invoicing is more than ever an important topic for the majority of companies around the world, especially in Latin America. With new government initiatives ahead, a diversity of challenges needs to be faced. After 11 years of successfully running the Exchange Summit in Europe the event is coming to the Americas in 2016. The Exchange Summit Americas held on June 7th and 8th in Orlando, Florida provides the participants with more than 30 hours of best practice case studies and key notes. Speakers from Brazil, Chile, Mexico, Peru, the USA, Canada, Belgium and many more show the trends in P2P […]