Category Archives: Receivables Finance

B2B payments boring? Think again as companies attract significant venture capital

Technology that facilitates B2B payments is increasingly attracting venture capital money in many areas:

* Pure product plays that look to take market share away from banks in areas like cross-border payments, check-to-ePayment conversion, virtual account structures to replace the need for a correspondent bank network, etc. * Infrastructure plays, which provide the foreign exchange services, Technology, Operations, Compliance and Risk management to enable banks, fintech and money service brokers to offer services to their client base. * Service providers that build B2B payment applications for banks and corporates. Typical areas of focus include cognitive automation, cloud and blockchain. Banks also want to move on from legacy infrastructure and do it incrementally in quick cycles.

B2B payment companies have raised significant amounts of capital recently, including Currencycloud ($80 million), AvidXchange ($260 million), Tipalti ($76 million, Transferwise ($292 million), Marqueta ($260 million), Ripple ($200 million) and Paystand ($20 million). Of course, Mastercard (AvidXchange) & Visa (Currencycloud) are behind some of these investments, driving B2B card use through the rails.

There are number of reasons why VC money continues to pour in here:

What Happens When Machine Learning Finance Models Fail

These are some strange times. Look, we have $16 trillion of negative yielding bonds, that’s T, for trillion. I’m asked by non-financial people why anyone would want to buy negative yields (you pay to hold them, btw) and I reply, it’s not about income, it’s about trading that rates will fall further.

Which got me thinking: If we are in some liquidity trap world and negative interest rate environment, what does that do to all these invoice financial models being built using the latest and greatest in artificial intelligence and machine learning?

Can Source-to-Pay Networks Go Beyond the Approved Invoice?

e-invoicing

Many source-to-pay (S2P) networks struggle to monetize their supplier ecosystem, and a few are looking to change things by using their network data to be more innovative with early pay finance, particularly invoice finance.

For those not familiar with invoice finance, there are three stages where it can be done:

Why Platforms Need to Monetize Their Supplier Ecosystem

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.

Dude Where is Our Plane? OR Thinking About Government Involvement in Credit Insurance

In Canada, the Export Development of Canada is the primary export credit insurer for businesses, especially small businesses.  They recently developed an online product that […]

5 Important Things Businesses Overlook When Extending Credit

Trade Financing Matters welcomes this Guest Post from Matt Osborn, Senior Marketing Manager at Apruve, a Fintech company that is revolutionizing how businesses buy from […]

Using ERP data Makes a great Case for AI Invoice Analytics

“Any sufficiently advanced technology is indistinguishable from magic. ” – Arthur C. Clarke We can credit the phrase “Garbage in, garbage out” (GIGO) to George Fuechsel, an […]

Are Logistic Companies Waking up to Trade Finance?

The logistics industry has a complex structure of players that enable products sourced globally to get to the last mile destination. There are freight forwarders, […]

Providing Preshipment Finance to Resellers in Africa

I recently had an opportunity to catch up with Chris Hale from Kountable. Kountable is doing some real trade finance, providing preshipment finance to resellers […]

Is There a Middle Market Liquidity Gap?

Middle market companies truly are the heart and soul of America. Many are family owned or private equity backed, and quite a few have foreign […]

Where to Start when Management Gives the Working Capital Mandate

There is no shortage of vendor posts and analyst writings on the topic of how to improve working capital. It seems that everyone believes that […]

Competing in the Middle Market Lending Bakeoff

I recently had a conversation with Barry Kastner, EVP and Head of ABL for Bibby Financial Services. Bibby North America has three businesses – an […]