Digitization and the Snapchat of Working Capital


They say that if you put a frog into a pot of boiling water,  it will leap out right away to escape the danger. But, if you put a frog in a kettle that is filled with water that is cool and pleasant, and then you gradually heat the kettle until it starts boiling,  the frog will not become aware of the threat until it is too late” Frog Fables

We live in a world where access to business credit is challenging for many, particularly small business, middle market companies, companies in emerging markets, start-ups, and many others without an investment grade rating.

A combination of factors is now making the allocation of credit a “where and when you need it proposition”, without necessarily setting up expensive credit lines, signing receivable purchase or intercreditor agreements. I call this the Snapchat of Working Capital and will be giving a keynote presentation at the Exchange Summit in Orlando on June.  There is a big shift in the way working capital will be provided to small and medium sized businesses in the future, driven by online and mobile technology, the impact of digitization, the fact more and more business is online (and thus data about those transactions is available).

A decade ago, SMB had to go to a bank for credit (or credit card company). Not today.  In some short time, say five years from now, credit will be a “where we need it and when we need it” proposition.

During my keynote session at the Exchange Summit, I will provide an overview of how technology is disrupting the world of business credit— and offer hypotheses on what the winners and losers will look like in this fast changing ecosystem. As part of the discussion, I’ll provide a level set on a range of topics, from new technology building blocks (e.g., marketplace platforms, networks, blockchain, predictive analytics, etc.) to the shifting world of technology applications (e.g., eProcurement, e-invoicing, purchase-to-pay, etc.). to new non bank intermediaries (e.g., Amazon Business, Greensill Capital, Institutional Investors).

Digitization is laying the foundation for new lending techniques and how credit is being reformulated through new platforms, channels, and whole new companies.

At the Exchange Summit Conference, the latest around E-Invoicing will be discussed, including the U.S. Government eInvoicing B2G mandate in 2018. E-Invoicing has become an important topic around the world. As my colleagues over at Spend Matters have said in their recent post,

e-invoicing is a market undergoing radical transformation from both the inside (and) out. A combination of disruptive new technology models that go far beyond first generation supplier networks and evolving market and customer requirements (and expectations) are in the early process of taking a sleepy accounts payable-centric solution area and putting it front and center as an enabler of broader procurement, finance, supply chain and IT strategies

I look forward to saying hello to you in Orlando.

To find out more about the Exchange Summit and its agenda, visit here

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