The United Nations Conference on Trade and Development (UNCTAD) is calling for reforms to the international monetary system, saying the need for government to support long-term development finance on domestic and international levels has “not been met” thus far. Trade Financing Matters believes that alternative financing models based on tech-enabled receivables financing and payables financing offer strong potential to serve developing markets.
An Internal Checklist for Procurement: Are You Ready to Implement a Trade Financing or Invoice Discounting Program?
With an increased awareness over reducing supply risk and implementing working capital programs, the world of trade financing is increasingly coming to procurement and supply chain organizations. In addition, many procurement organizations are entering new levels of maturity with their purchase-to-pay (P2P) programs and systems that can serve as a foundation for a range of trade financing initiatives, starting first with approved invoices as a trigger for early payment. But trade financing can appear complicated from the outside. To assess whether you’re ready to take the plunge in developing and implementing a broader trade financing strategy with a procurement-centric (i.e., holistic supplier engagement that balances a range of elements) model in mind, you need to ask yourself a few questions first.
There has never been a more absurd situation than exists now between procurement and supply chain practitioners and finance team members. On the one hand, there are countless programs attempting to unify and extend payment terms to suppliers, to the greatest degree possible. Such activity can have a negative procurement interest on supplier relationships while increasing supply risk, especially with lower tier suppliers, where visibility into financial health and stability is often lacking but where the trickle down effect from payment term extension ultimately comes home most to roost. Yet on the other hand, we have access to a truly amazing array of new technologies that accelerate and provide visibility into approvals and trade documentation, combined with what appears to be a near limitless supply of third-party capital, which is willing to invest in and fund both receivables and payables financing programs. Collectively, the combination should drive down the cost of capital for early payment programs, accelerating the flow of cash in the supply chain.
Join us Friday, April 24 at 9 a.m. CDT for Q2 and Q3 Metal Market Forecast (And How Bearish Markets Create Opportunities for Global Trade Cost Reduction). Trade Financing […]
Trade Financing Matters is proud to announce that we will be featured on the upcoming webinar, Q2 and Q3 Metal Market Forecast (And How Bearish Markets Create […]
There was an article out in Global Trade Review claiming Approved Payable Finance or Reverse Factoring is a logical next step for Factors. But is […]