Few Lift Kimono to Show Real Data in Alternative Business Finance

Trying to determine just how much alternative business finance is occurring in the form of payable and receivable solutions versus mainstream lending is not a straightforward task. As we mentioned in a previous post, for the majority of alternative finance B2B providers, information on size, volumes, etc. is kept private, no different than trying to find the payment terms and commercial agreements between a Bechtel and a Sunoco or IBM and one of its engineering suppliers. That data is just not public.

Why E-Invoicing Has Failed to Attract Outside Funding

As Tungsten recently reported in its financial results, the level of adoption for bank or non-bank intermediated financing through supplier networks and e-invoicing programs is still embryonic. Spend Matters and Trade Financing Matters estimate that more than 95% of invoice discounting and dynamic discounting programs that leverage an e-invoicing, supplier network or related platform capability currently rely on corporate self-funding to support such programs on a volume basis today. Finding a logical answer to why third-party adoption is low requires a deep dive.