A story recently in Reuters talked about how the biggest trading houses are filling the traditional banks (and mostly European banks role) of funding traders. This got particular attention, especially in light of the Obama administrations sanctions on Rosneft and other big Russian commodity producers. If you look at the big trading houses, do they really want to take over the role of banks (who have access to historically cheap deposits?). Or is it really a question of providing these large trading houses with huge credit lines to further provide upstream finance to their smaller counterparties? The authors Dmitry Zhdanniko […]more ▸
I am not going to rehash all the stuff about Obama’s big launch to help small suppliers get paid early. It was an e-invoicing vendor’s banana split on a hot summer day. Let’s just say, it can’t hurt. I mean, what does Coke, J&J, Toyota, etc. have to lose? I would bet my bottom dollar that all have some initiatives already to help small suppliers – p-card programs, PO finance for small critical suppliers, dynamic discounting, reverse factoring or supply chain finance, etc. SupplierPay builds on the federal government’s QuickPay initiative, which President Obama launched in 2011. That program mandated […]more ▸
Hats off to Taulia for raising $27 million Series D round at a valuation around $200 million. See this WSJ article. Jason has been covering the valuations in the P2P market for some time (read What Really Drives Valuation For Technology Companies These Days?) It’s pretty frequent that I get calls from the private equity world trying to understand the size of various early pay techniques. Not surprising, many of the apps being developed are finance oriented. What we have going on now is sort of a gold rush to find the next big company for early payments. While there is a perfect […]more ▸
Trade Financing Matters - Free White Paper Download
The model for the C2FO market has gained significant momentum over the past 6-plus years. What makes it different than alternative lenders? What are its strengths and weaknesses and what is the ultimate upside present in this model? Find all this out and more with this new, downloadable white paper from Trade Financing Matters.
Update, 23 July-The SEC voted 3-2 to abandon the fixed $1 share price and float in value like other mutual funds. The rules also allow money funds to temporarily block investors from withdrawing their money in times of stress, or allow the funds to impose a fee to redeem shares. Companies would have up to two years to comply with the changes. As a corporate treasury or institutional investor, you should be smart enough to know that your money market fund’s net asset value does not always equal a buck. That’s accounting heresy. This Wednesday, July 23, 2014, the Securities […]more ▸
We are seeing the movement of data and documents to a networked world. I remember reading Nicholas Negroponte, the author of the 1995 best seller, Being Digital, who touted the bits and bytes innovations as the fax and the CD-ROM were heading the way of the Beta Max and dodo bird. Heck I still remember when the lockbox business was considered sunset in the 80s and receiving mail, wait we still get mail?). Okay, back to the topic, what exactly does digital transformation mean? What should senior management focus on and why? This is almost always painful because many in […]more ▸
With the explosion of early payment solutions to assist a buyer’s supplier group (egs. dynamic discounting, reverse factoring) and the start of receivable auction markets, the issue of rebates and retiring payables early has become serious. For reverse factoring programs, the trade payable vs. bank debt issue has no clear guidance from the IFRS in regards to reclassification of trade payables to bank debt. I’ve touched on this in a prior post – see Supply Chain Finance Payable Reclassification issue – dead or alive? For dynamic discounting programs, the focus of this blog, most of these programs are generally small […]more ▸
Payplant got their start when a few tech entrepreneurs (Ronjon Nag, Neerav Berry) sold their app development business to Blackberry. In the course of their software development days, Payplant noticed how difficult it was for app developers to stay in business, since the majority of their expenses are expensive contract labor (programmers) who can quickly walk off the job if not paid on time. The founders saw a need to accelerate payment for these vendors and now have been operating for over a year (yes, filling an unmet need). Like any of these new ventures, you have to ask a […]more ▸
Demica is owned by J.M. Huber, a diversified multi-billion dollar family owned company headquartered in the U.S. with operations and staff located globally. I had to ask what a company of this size is doing owning a vendor in the supply chain finance space? After all, J.M. Huber is a diversified multi-national company dealing with engineered materials and natural resources. Huber established a financial services division in 1997 and started working with Demica in 2001. In 2002, they acquired the platform. So they have held the standalone company for 12 years. But just what does Demica do? Demica’s three core […]more ▸
Given the explosion of new alternative lending models, corporates are now being pitched by not only their bank(s) but software vendors who increasingly are coming with technologies and money to help with early payment solutions. I have spoken to a few banks that have been beaten to the punch bowl by vendors anxious to tell their story (and of course grow). Because vendors get there first, banks increasingly have to find ways to work with these vendors (or not). I have written about some of the more innovative small business platforms that present a real threat to banks small business […]more ▸
Vast majority of payments are made by cheque I continually receive mailed cheques to Canada (yes cheques, not checks) from my business relationships from across the border. It never ceases to amaze me how many U.S. businesses (including bank clients) still deal in the world of cheques. In the U.S., cheques continue to be the dominant business-to-business payment method. While Europe has made great strides with contactless card payment methods and chip and pin cards; the U.S. still relies on paper checks. The Association of Finance Professionals recently surveyed its members around electronic payments and released some key findings […]more ▸
Mixing Apples and Oranges: 8 Differences Between Dynamic Discounting and Supply Chain Finance Programs
Trade Financing Matters - Free White Paper Download
Discover what separates innovative discounting and supply chain programs with these 8 easy-to-digest differences. While these 8 differences aren't the be all, end all, they will give vendors and consultants a better idea of where discounting and supply chain programs stand and how they can benefit each other in a corporate setting.