Category Archives: Invoice & Receivable Finance

Ariba, SAP and Financing the Supply Chain: What’s Next – Partnerships, Acquisitions and Other Ideas


Earlier this week, I shared a quick update on where Ariba stood as a quiet but material player in the invoice discounting market. It’s important to note, however, that invoice discounting alone is but one small – and barely penetrated – sub-sector from an adoption standpoint within the tech and purchase-to-pay- (P2P) enabled trade financing area. Ariba and SAP have significant opportunity to become a leader in this still exceptionally fragmented and nascent market segment. While it’s unlikely they will truly remake their procurement, accounts payable and treasury business lines around the next wave of trade financing – as Basware and others are placing significant bets on – we firmly expect to hear much more from the ERP and cloud giant in 2016. Here are some speculative partnerships and moves we expect Ariba, Concur, Fieldglass and SAP to consider as they expand their presence in the trade financing market.

Should Procurement Organizations Prioritize Invoice Discounting Over Other Trade Financing Approaches?


Invoice discounting programs that rely on underlying e-invoicing capabilities make perfect sense on paper. But to date, the vast majority of organizations implement e-invoicing programs to meet regulatory requirements or drive operational efficiencies before scaling discounting components of a program. Even those organizations that engage with an e-invoicing provider or supplier network vendor offering discounting capabilities often consider these programs as part of a second phase roll-up rather than an initial priority. There are practical reasons for this, given the relative immaturity of many accounts payable organizations combined with questions that treasury may raise in the process of considering invoice discounting initiatives that are internally funded. But in reality, with the right strategy defined and set in motion, there is no reason not to prioritize invoice discounting as the centerpiece of a buyer-led trade financing program.

Beyond the Invoice: Ruminations on the Future of Document-Triggered Financing

Late last year, David Gustin penned probably the best white paper on the future of trade financing. In his analysis, David argues that there are 6 specific triggers for potential intermediated or early payment: signed contracts, the issuance of a purchase order (PO), materials ordered by suppliers, shipping status, invoice issuance and invoice approval. From a traditional indirect or even direct materials procurement scenario, these steps make complete sense as potential financing triggers, and they are certainly triggers for payment in the offline factoring world today. But if you open your mind a bit to other potential triggers in different areas and scenarios, the prospects become quite interesting indeed.

UPS Capital – still mostly a Packaging Company

UPS Capital, a subsidiary of UPS, provides insurance, financing and payment services that are unique, relevant and competitive. I have heard UPS Capital, which is […]

Electronic Invoice Marketplaces – To Sell or Not To Sell? Part V

Post five on Electronic Invoice Marketplaces looks at both the Investor and Seller downsides to invoice auction markets There are several challenges when buying receivables […]

AztecMoney provides Emerging Market receivable play for Investors

Aztec Exchange is an online platform launched in May 2013 to enable SMEs in emerging markets and credit-constrained developed markets, particularly in Europe, to sell […]

Seller Based Electronic Invoice Marketplaces – To Sell or Not To Sell? Part III

This is our third post on seller based Electronic Invoice Marketplaces and looks at the parties and roles of an auction market. Who are the […]

Should Companies Sell Invoices on Auction Marketplaces? Part II

This is the second of our posts on Electronic Invoice Marketplaces and examines how invoice auction markets work. How the Invoice Auction Process Works Most […]

Erosion of Receivables a growing problem for Asset Based Lenders

We are seeing more blue chip companies provide a menu of supply chain finance for suppliers, including reverse factoring, dynamic discounting, and pcard programs to […]

Gleaning through Tungsten’s Interim Financial Report

My colleague Peter Smith covered Tungsten's financial result earlier this week-  see Tungsten’s Half-Year Results: Short-Term Disappointment, but Long-Term Promise Okay Tungsten is losing money. […]

On–Demand, Event Triggered Finance With Network Models – A Game Changer?

Trade Financing Matters - Free White Paper Download
The talk about supply chain finance and in particular new ways of financing commercial transactions, be they international or domestic, has mostly just been that, talk. Most of the developments have been around financing suppliers off an approved buyer invoice, which makes the risk easier to manage. Could on-demand, event triggered finance with network models be the ultimate game changer? Find out with this new, downloadable paper from Trade Financing Matters.

Ledger Extraction Makes Small Business Overdraft Finance More Efficient

Much of our focus on TFM is around Purchase to Pay solutions embedding finance. But we cannot forget the enormous market that exists for companies […]