GT Nexus uses Big Data to offer suppliers on their Network Purchase Order Finance David Gustin - June 8, 2015 3:53 AM | Categories: Supply Chain Finance | Tags: GT Nexus, preshipment finance, purchase order finance, Seabury TFX Many traditional lenders struggle when approached about an inventory finance request in the form of purchase order finance. It’s risky. They have a hard time verifying sales forecast, the status of the purchase order, use of the funds, assessing the bill of materials of the borrower, assessing the historical trade between the counterparites, etc. I could go on. It’s hard. It’s labor intensive. But GT Nexus, the world’s biggest cloud based Business Network for global trade with over $100 billion of goods managed on the platform, is now offering purchase order finance. Through their data, their funding provider, asset manager Seabury TFX, can assess historical performance and risk levels to incorporate details such as on time payments, late shipments, cancel orders, and chargebacks in their underwriting model. It’s a game changer for PO finance and lets suppliers get higher advance rates and better finance rates. And because data is viewed by finance providers real-time, you can build in rules to allow them to do decision a lot quicker. I remember living in Asia in the 80s and how firms there relied on the letter of credit so they could take their L/C to their banks to arrange what was called a packing credit, essentially an advance on the LC. But as the market has moved away from L/Cs over the years and it has become a specialized product, that has left many Asian suppliers without that source of funding. My how times have changed. I am down at GT Nexus Bridges Conference this week in Miami and will be further reporting live, and I am sure this is one of the topics that will be examined in detail. Stay tuned. p.s. to receive TFM’s weekly digest every Monday morning, sign up here Related Articles Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of new posts by email.