Because P2P solutions started giving away supplier portals, cash flow optimizers, analytics, support, etc., they closed a revenue door. Trying to build a sustainable business model when half your ecosystem is not monetized is very challenging, even as P2P platforms add features and functionality. Sure, many platforms are trying to figure out payments, and that is something that scares the bejeebers out of them due to regulations and compliance rules. (Don’t pay that blacklisted vendor or person, or else.) But payments is not a profitable business for platforms, it’s a service.
B2B Collateral Lenders – Meet the New B2B Information Lenders
Interviewer: HAL, you have an enormous responsibility on this mission, in many ways perhaps the greatest responsibility of any single mission element. You're the brain, […]
Beyond A/P Alone: Summarizing the Core Benefits of Finance and Procurement Alignment
So far in this series examining finance and procurement alignment, we noted that the coordination between the two functions, especially within the accounts payable and transactional purchasing areas, can bring greater savings opportunities that can be achieved with each individual function pursuing its own initiatives. In particular, we observed that when procurement and accounts payable had aligned systems, processes and goals (ideally in that order) they achieved savings significant beyond what each function can deliver individually.
Change Management and Foundational Alignment for Finance and Procurement
Beyond process and systems integration, the real need is in aligned goals between procurement and finance. If procurement sees the key to success as getting as much spend as can be identified under management as soon as possible, it will prioritize the identification of savings options (strategic sourcing, inventory reduction, vendor managed inventory, etc.) and implementing new contracts as quickly as possible. Under this scenario, activities like invoice verification and supplier scorecard monitoring will not be a priority.
How Banks are Closing Payable, Receivable & SCF Products Gaps
A week does not go by without another a bank announcing a partnership with the latest fintech vendor or rolling out the latest payable or […]
Goldman Sachs suggests larger role for Shadow Banks
In Goldman Sachs report, Future of Finance, the focus was on where new entrants and shadow banks were most likely to gain entrance. Their conclusion […]
Future Goldmine or Roadkill? Partnerships abound in Alternative Business Finance Space
There have been a significant number of partnerships announced in the last year or so around alternative business finance. Below is a sample of some […]
Will Alternative Finance Options Erode Middle Market Credit Facilities? Post 2
In today’s exciting world of Buyer-led finance, one must remember that companies do not just sell to one buyer. In fact, a company could sell […]
Will Alternative Finance Options Erode Middle Market Credit Facilities?
To the best of my knowledge, there is no study that has examined how middle market companies will use existing credit facilities versus the emerging […]
When will this huge Corporate Cash Hoard be Unleashed?
While the AFP Corporate Cash Indicator indicates companies continue to accumulate cash, the more pressing issue is when the U.S. Government will get around to […]
Give me my Share of Wallet, Bankers Cry
Look, I may not be the favorite son of many a banker, and certainly the lot has been demonized over the last few years (many […]
