Trade Financing

This is your access point to our coverage of Trade Financing. Here we provide practitioners with a unique analytic perspective, as well as the technology and innovation in its adoption. Launched in January of 2014 to discuss the issues around trade credit and trade finance management, Trade Financing Matters offered coverage on a variety of topics that impact how companies finance their procurement and sales, from technology to regulation to zero based investing environments.

 

As coronavirus idles service economy, ‘merchant cash advances’ can help e-commerce vendors

procurement

The coronavirus outbreak is shutting down our service economy. Besides the usual suspects — restaurants, bars, gyms, etc. — we have a whole host of products and services where demand is collapsing.

It’s tough sledding when demand is vastly reduced or just plain stops.

One area where we won’t see declines is around digital commerce. As widely reported, Amazon announced plans to hire 100,000 warehouse workers. Many of the sellers on these platforms will be in need of cash to survive or to meet demand, and thus keep workers paid, including employees and gig workers.

While merchant cash advances (MCAs) may not be the cheapest form of generating quick cash flow, they are fast and are not a loan, but a sale of future receivables.