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Many large Corporates now run multiple early pay finance programs, doing a bit of dynamic discounting over here, pcards for some smaller suppliers, some supply […]

It is common to hear about Financial institutions not lending to support buyers and sellers of goods, both domestically and cross border, and how this […]

Many middle market companies who sell to OEM and large enterprise customers are routinely offered some form of early pay technique such as supply chain […]

I recently went out and spoke to 30 Global Procure to Pay executives at companies in both North America and Europe.  The general consensus can […]

Over the holidays, I tried to figure out how to incorporate reader correspondence into Trade Financing Matters to make the site more interactive and not […]

I have been asked countless times about how vendors get compensated when they enable finance. The question typically goes, “How does Taulia or Basware or C2FO make money off finance?” The answer is not so simple — an implementation fee, a subscription fee and perhaps a 20% to 25% gain share on the income earned. Who knows? What you really need to understand is who should get compensated for risk and what’s the value of information to funders. For many banks that have funded vendors, the value on the approved invoice is the integration work that vendors have already done.

In banking, technology and treasury circles, one rarely hears any mention of Ariba in regards to trade financing these days. Compared with other B2B tech plays making plays these days on the financing side around new or expanded initiatives such as Taulia, Basware, C2FO, Kyriba, Prime Revenue and others – often times in very different ways and different markets – Ariba has been relatively quiet of late surrounding new initiatives. (But there does appear to be some activity behind the scenes – more on this in the next installment of this series.) The one area that Ariba has quietly been promoting is invoice discounting adoption. This is not bad. In fact, it probably makes Ariba one of the larger providers today with an electronic invoicing or supplier network capability tied to some type of invoice discounting solution.

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.

Two weeks ago the Government sent around an optional data request to the fifty SupplierPay pledges to begin the process of measuring how the program […]

Many large corporates are defining the role and remit of their Global Process to Pay space, and attempting to align A/P Automation, eProcurement, eInvoicing, Dynamic […]

When I speak to the Small Business Administration and Department of Commerce folks about SupplierPay, they always comment how passionate I am about the issue. […]

Banks can put together a comprehensive purchase to pay solution that includes invoice automation, workflow approval, business rules, and of course payment processing (via commercial […]