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. […]
Is There a Tech Solution for Supplier Portal Proliferation?
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group May 14, 2019 When we look at source-to-pay solutions, we tend to look at it from one side, that is, how this is going to improve the accounts payable department, reduce cost, be more efficient and improve supplier collaboration. But then I hear quotes like this […]
PPC: On Late Payment — Regulate, Shame or Just Deal with It?
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group May 21, 2019 There was some recent shaming of some very large companies by the UK government that did not comply with the Prompt Payment Code (PPC). Seventeen large companies, including heavyweights such as Vodafone, Rolls Royce, SSE and British Sugar, were suspended pending promises to […]
Blockchain and Digital Invoice Finance — What’s Missing?
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group July 2, 2019 What is the most resilient parasite? Bacteria? A virus? An intestinal worm? An idea. Resilient … highly contagious. Once an idea has taken hold of the brain it’s almost impossible to eradicate. — “Inception” (2010) Similar to an idea in the movie “Inception,” […]
Predicting Dilution – The Key for Invoice Finance Solutions
Sabeen Ahmed, COO and Chief Credit Officer, The Interface Finance Group There are few truisms left anymore especially in this era where trust is at a premium and everything appears to be a product of fake or fiat news. But in terms of the risk, funding receivables based on seller’s data or funding receivables based […]
3 Essential Factors to Facilitating Supply Chain Finance Adoption With Suppliers
NICK HEINZMANN, SpendMatters – June 18, 2018 As general awareness about dynamic discounting and supply chain finance grows among practitioners, procurement groups are increasingly pushing their technology providers to offer early payment capabilities. These organizations are primarily seeking to strengthen their supply base, relieving the DPO stretch that has plagued small suppliers as of […]