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The payment process is integral to not just transactional procurement, accounts payable and supplier management. It is also an essential component of receivables and payables trade financing models. This fifth installment in our Spend Matters PRO series exploring how procurement touches and is impacted by the payment process provides insight into the intersection of payments and trade financing, especially buyer-led (or influenced) models. See also:
- Part 1: Procurement’s Role and P2P Case Examples
- Part 2: Best-in-Class P2P Technology Capabilities and the Reconciliation Process
- Part 3: Payment Operations — Challenges and Opportunities
- Part 4: Setting Up Suppliers for Payment — the Intersection of P2P and Supplier Management
In this brief, we explore the two most popular (non-factoring) trade financing models — supply chain finance (SCF) and dynamic discounting — as well as their payment intersections, especially from supplier on-boarding and enablement perspectives. We also provide an introduction to hybrid early payment and trade financing models.