Five Myths about Supply Chain Finance
What was once a niche service for investment-grade corporate buyers and their largest suppliers is now a critical financial tool that provides liquidity throughout the supply chain.
However, even with its move to the mainstream, SCF is often poorly understood by both buyers and suppliers who could benefit most from its use. Here five of the biggest myths about Supply Chain Finance.
Supply Chain Finance Outlook 2023
Nothing – not supply chain logjams, not higher interest rates, not economic uncertainty — could dampen the continued growth of Supply Chain Finance.
Global volume of Supply Chain Finance reached nearly $2.2 trillion in 2022, up 21% from 2021, according to BCR Publishing’s World Supply Chain Finance Report 2023.
Since 2015, the industry has expanded at a 31% compound annual growth rate.
In this report, we’ll examine the outlook for Supply Chain Finance, the factors that are driving its growth, and innovations that will carry it forward.
Many Fintechs Still Rely on \’Bring Your Own Bank\’ Strategy for Supply Chain Finance
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group Today, banks are by far the dominant player in providing supply chain finance, and do so in four ways: Direct credit facilities to their customers (corporate buyers) who can then use the facility for early payment to their supplier ecosystem. Provide an uncommitted credit facility to […]
LIBOR Phase Out: Considerations for Supply Chain Finance
DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group September 19, 2019 LIBOR has been the default benchmark interest rate for supply chain finance since this technique was developed approximately 20 years ago. By year-end 2021, LIBOR will be phased out. So how does this impact supply chain finance? For a market […]
Supply Chain Resilience and Small Suppliers
A Bruising Market Hits the Smallest Hardest Peter Jacobstein, Chief Strategic Partnership Officer, The Interface Financial Group January 12, 2021 | A recent Harvard Business Review article paints a dire picture for small and mid-sized suppliers (SMEs), and for the larger companies that depend on them. “A Financial Crisis is Looming for Smaller Suppliers[1]” argues […]
Technology and Funding Inclusivity
Everyone knows: the less you need financing, the easier it is to get. Fortune 500 companies have virtually unlimited access to working capital solutions. But their suppliers, especially those in the long tail, often struggle. At best, securing working capital is cumbersome and expensive. At worst, it’s not available at all.
Will New FASB Disclosure Rules Change Supply Chain Finance?
In September 2022, FASB issued ASU-2022-04, with new disclosure rules for Buyers who offer Supply Chain Finance programs to their Suppliers. In this report, we’ll examine the new rules, explain when disclosure is required, and discuss their potential impact on Supply Chain Finance.
Supply Chain Finance: The Trillion-Dollar Opportunity for Procure-to-Pay Networks
Worldwide Supply Chain Finance volume reached nearly $2.2 trillion in 2022, up 21% over the year before. This means Procure-to-Pay and AP Automation firms have a trillion-dollar opportunity to add Supply Chain Finance as a service for their customers. This article explores what Supply Chain Finance is, why it’s important, and how firms can benefit from offering this valuable new service for their customers. We’ll also examine successful case studies of Procure-to-Pay and AP Automation firms partnering with Supply Chain Finance providers.
Five Myths about Supply Chain Finance
What was once a niche service for investment-grade corporate buyers and their largest suppliers is now a critical financial tool that provides liquidity throughout the supply chain.
However, even with its move to the mainstream, SCF is often poorly understood by both buyers and suppliers who could benefit most from its use. Here five of the biggest myths about Supply Chain Finance.