Trade Financing Matters – a round up of posts for procurement people

We mentioned the launch of Trade Financing Matters a couple of weeks back here.  Since then, David Gustin, the site editor, has shown that there isn’t going to be shortage of material to cover on the site. He’s publishing around three or four articles a week by the look of it, and as well as being a deep expert on the topic, he writes well too, which helps!

The inaugural post was actually published back on December 30, 2013. So a month and more into the new site’s career, here’s a round-up (put together by Spend Matters US editor Sydney Lazarus) of some of the posts that may be of most interest to procurement folk.

It’s Not About the Technology – “When it comes to credit, it’s about a lot of things other than technology. It’s about understanding liens and covenants and bank loans. It’s about understanding there is both cost of origination as well as monitoring what you originate.”

The Supplier as a Lender – “Most companies may not realize that by providing goods and services to buyers, their payment terms provide a form of a loan to their buyers. This loan, or trade credit, be the largest user of capital for most businesses. Customer demand for trade credit requires sellers to provide free and flexible funding for their customers.”

Supply Chain Finance Programs Find Unlikely Anchors—State Governments – “If you are a vendor to any municipal, state or the federal government, you know getting paid can be painful! Well, if you are a vendor to the State of Illinois, it can even be risky… But a new program put in place for about a year to deal with the chronic late payment from the state is now helping many vendors.”

The World According to Big Buyers – “Large global corporations like Nestle, Unilever, Anheuser-Busch InBev, and Kraft buy billions of dollars of ingredients, commodities, chemicals, and indirects (e.g. legal, transportation, marketing) in order to make their brands. Their payment terms create receivables on their suppliers’ balance sheets.”

Pubs, Tubes, and Cheap Money—Crossflow – “I was in London this week, and besides great pubs, great Indian food, weather similar to my hometown of Vancouver, and a Tube system second to none (you don’t need to exercise with all the walking you do underground), I had the pleasure of meeting Spend Matters UK editor Peter Smith.”

You want a Letter of Credit, Really? Part 3 – The final element of a three part series that certainly taught me more than I ever knew about Letters of Credit – why you might not want not use them, and when they might still be  valuable.



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