ABF Segment Overview: Software Providers/ Platforms selling to Large Corporates

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One of the most confusing things in the fintech and altfin space is that no one really knows how to segment the market.  There is a tendency to throw companies from many walks of life in the same bucket.

For example, the Supply Chain Finance Community over in the Netherlands is getting 31 vendors to respond to a SCF RFP.   The companies that are involved include a confusing mix including Anachron, Basware, Codix, InvaPay, Premium Technology , Trade Cloud, + seller-centric solution providers.

A big part of the reason I launched the ABF was to help the market understand the segments better.  In terms of Software Providers/ Platforms selling to Large Corporates, vendors playing in this space offer an array of Source to Settle and Order to Cash solutions including eprocurement, e-invoicing, supplier networks, Treasury management, receivables management, etc.  Typically these solutions are integrated into a data warehouse or the client’s ERP.

On the AP side or in Procure to Pay solution space, the vendor market typically focuses on the Global 2000 companies that generate $3 billion of spend or more.   On the AR side, big AR billing companies like FiServ, FIS, Billtrust, make software only available to big companies to deliver their invoices and provide downstream services.

Below are a few examples of the companies that play in this segment.

 Software Providers/ Platforms selling to Large Corporates

  1. C2FO - operates a working capital market for clients who include Costco, Walgreen, Sysco, ToyRUs and Toshiba. Using the online marketplace, large companies can use C2FO as a liquidity management tool for treasury, designating the amount of cash they have available for early payments and what amount of discount or return they’d need to accelerate an invoice. Their suppliers will then bid for a share of that money depending on their own cash flow and cash management needs (this is the unique “supplier-pull” model of C2FO).
  2. Invoiceware –setting up Special Purpose Vehicles in Brazil and Mexico to funnel transaction invoices that have gone through their tax compliant network. Invoiceware International’s supply chain financing solution offers a “Pay Me Now” option for suppliers in those markets. Investors purchase notes issued by an SPV. The SPV will use these funds to acquire invoices (trade receivables) thereby giving investors a return linked to the economic performance of the receivables.
  3. GT Nexus:  GT Nexus is rolling out a program to offer 50% funding on a purchase order issuance and 100% funding at invoice.  See more here
  4. Kyriba - offers payable finance (dynamic discounting and reverse factoring) to their Treasury Management clients (and white labels their platform to some banks) as well as has the potential to roll out a receivable finance service for companies using their SaaS Treasury Management solution.
  5. PrimeRevenue – In addition to the largest non bank provider of reverse factoring programs, PrimeRevenue now offers suppliers options to sell receivables where their Buyer does not want to increase their facility.
  6. Tungsten Network - The strategic vision of Tungsten is to create a leading cloud-based global trading network that monetizes the existing OB10 e-invoicing platform through electronically secure encrypted invoice discounting against “approved for pay” invoices.

There are many others not shown.  As we explore this segment in future posts, we will look at the different ways vendors develop or can develop assets to originate to the institutional market.

Please contact me at dgustin at tradefinancingmatters.com if you would like to learn more about the ABF.

Please follow David Gustin on Twitter @TFMatters

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