To Reclassify Trade Payables or Not?
David Gustin, Managing Editor, Trade Financing Matters, IFG Chief Strategy Officer As more companies adopt early pay programs, including self funded and third party supply chain finance (“SCF”) programs, concerns are growing that third-party arrangements could trigger accounting problems. Trade Finance Matters examines the background and where we are today. Background With the […]
How Multi-Enterprise Networks are Changing the Supplier Finance Game
How Fintechs Can Use Non-Banks for Supply Chain Finance
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group February 12, 2019 In my last post, \”Many Fintechs Still Rely on \’Bring Your Own Bank\’ Strategy\” for Supply Chain Finance, I discussed how source-to-pay platforms and other cloud software providers still rely on their clients’ house banks for supply chain finance and why that might […]
Has Off-Platform Lending’s Time Finally Arrived?
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group January 15, 2019 “You would rather have the cash than borrow against it.No one says I would like a lot of inventory so I can borrowagainst it.” — CFO in farming and mining machinery More companies are required to use supplier […]
Addressing S2P Platform Misconceptions Around Early Pay Programs
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group February 27, 2019 David Gustin is the chief strategy officer for The Interface Financial Group responsible for digital supply chain finance and is a contributing author to Trade Financing Matters. Few source-to-pay platforms, payment processors or other networks have been able to develop early pay dynamic […]
Pricing Power and Playing with Payment Terms
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group March 12, 2019 David Gustin is the chief strategy officer for The Interface Financial Group responsible for digital supply chain finance and is a contributing author to Trade Financing Matters. “When an inflation regime shifts, there’s only one question that really matters for […]
Why Corporates Can\’t Fund Early Pay Programs (Dynamic Discounting + SCF)
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group March 19, 2019 We hear so much about how flush American companies are with cash. Pundits are out there talking about how much cash corporate America has. But this story is highly misleading. If you look at the graph below, 5% of S&P […]
Accounting Considerations on SCF Transactions
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group Whichever way you look at it and define it, supply chain finance has grown into a big number. And if you define it as using the balance sheet of a large company to offer early payment to some or all of its suppliers, it is […]
Why Payment Companies are Missing an Opportunity with Early Pay (Part 2)
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group April 9, 2019 As we pointed out in our last post, payment companies are looking to convert paper checks to cards, and this is drawing interest from many firms, from private equity investing into payment companies to acquisitions (e.g., Fleetcor acquiring Nvoicepay, Visa buying Earthport). The […]
Is Supply Chain Finance Pricing Mispriced?
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group April 5, 2016 Funding has grown more sophisticated with supply chain finance programs to large companies, driving margins down in many cases. There are several interesting issues around pricing: Platform providers make money on transactions not explicit charges for their sales, marketing and onboarding efforts. […]