The COVID-19 pandemic is shining a spotlight on the importance of stable supply chains – and their role in achieving business continuity. Buyers are markedly more conscious of the impact their suppliers have on their ability to provide services and are increasingly using sophisticated digital tools to help protect them.
Adeline de Metz, UniCredit’s Global Head of Working Capital Solutions explains how corporates must continue to optimise working capital strategies and use tools such as reverse factoring and digital dynamic discounting – which have, promisingly, seen increased adoption since the beginning of the crisis – in order to bolster supply chains and help lay the foundation for economic recovery.
To read the article, please click here.
Promoting the launch of the GSCFF’s latest report, Christian Hausherr (Chairman, GSCFF and Product Manager Trade Finance / Supply Chain Finance EMEA, Deutsche Bank), Stacey Facter (Senior Vice President – Trade Products, BAFT) and Peter Mulroy (Secretary General, FCI) spoke about the misuse of payables finance in the latest episode of Trade Finance Global’s Trade Finance Talks Podcast.
The report, Ensuring payables finance remains a force for good, aims to address criticisms of payables finance across three key areas: the potential adverse impact on suppliers, issues relating to financial reporting and transparency, and overall programme risk.
To listen to the episode, please click here.
Speaking with GTR, Christian Hausherr (GSCFF chair and European head of payables finance at Deutsche Bank), Peter Mulroy (FCI secretary general) and Stacey Facter (senior vice-president for trade products, BAFT) discuss the misuse of supply chain finance and the release of the GSCFF’s new report – Ensuring payables finance remains a force for good.
“If correctly implemented, it is clear that payables finance is a means for buyers and sellers to optimise their working capital and strengthen their relationships with each other. It is our goal to ensure that this is correctly implemented across all industries and geographies.”
To read the full interview, please click here (paywall).
The Global Supply Chain Finance Forum (GSCFF) – comprising BAFT (Bankers’ Association for Finance and Trade ), FCI (formerly known as Factors Chain International), the International Chamber of Commerce (ICC), the International Trade & Forfaiting Association (ITFA) and the Euro Banking Association (EBA) – has released a new paper in response to growing concerns regarding the use of supply chain finance (SCF) and, in particular, payables finance programmes. The report, Ensuring payables finance remains a force for good, aims to address criticisms across three key areas: the potential adverse impact on suppliers, issues relating to financial reporting and transparency, and overall programme risk.
To read the full report, please click here.
The news was covered by GTR, TXF, Finextra, Financial IT, The Paypers, Trade Finance Global, Fintech Finance, TRF News, Hellenic Shipping News, Fintech Insight, Sailor News, Business Money, Supply and Demand Chain Executive, Capital Finance Club, Breaking Finance, Fintek News, PYMNTS, Procurement Nation, CTMfile, The Corporate Treasurer, Supply Management, Marasi News, Supply Chain Best Practices.
In a global supply chain, each supplier, regardless of size, can form a critical link. But as trade tensions escalate and macroeconomic conditions worsen, global supply chains – and the suppliers that underly them – are looking increasingly vulnerable. If a link in the supply chain breaks, production lines can grind to a halt – a particular worry for the large buyers that sit atop this global process.
To foster stability across supply chains, and to help suppliers optimise their working capital, companies are increasingly turning to payables finance, a supply chain finance technique. Through payables finance, large corporate buyers can extend or maintain existing supply payment terms and suppliers can access financing at a rate that reflects the risk of its highly creditworthy buyer.
But as demand for payables finance grows, how is the industry adapting to meet it? Christian Hausherr, Chair, Global Supply Chain Finance Forum and Head of Product Management, Trade Finance and Supply Chain Finance, Deutsche Bank, explores in an article for TXF.
The article can be read here (behind paywall)
With the market for payables finance – and the understanding of it – evolving all the time, Deutsche Bank has released a revised and updated guide that seeks not only to factor in the latest developments, but also to re-evaluate the key questions that define the industry. What is payables finance and where does it fit into the wider universe of supply chain finance techniques? What is driving demand for these solutions? How do the physical and financial supply chains interact? And how do you go about setting up a successful programme?
“Payables Finance A guide to working capital optimisation” can be read here.
The news was covered by: Business Money, Trade Finance Global International Trade Magazine, TRF news, TXF, The global treasurer
Writing in Documentary Credit World, Christian Hausherr, European Product Head of Payables Finance at Deutsche Bank and Chair of the Global
Supply Chain Finance Forum, and David Trecker, Global Head of Supply Chain Finance at Bank of America, discuss the industry-led initiatives advancing clarity and consistency for payables finance.
The article is a part of a series aiming to increase understanding of the techniques outlined in the Standard Definitions for Techniques of Supply Chain Finance, first published in 2016.
Read the article in the July/August edition of Documentary Credit World. (subscription required)
In an interview with Global Trade Review, members of the Global Supply Chain Finance Forum (GSCFF) explained the importance of their new guidance document on receivables discounting.
GTR spoke with Christian Hausherr, European product head of supply chain finance at Deutsche Bank and chair of the GSCFF, Stacey Facter, senior vice-president for trade products at Baft, and Farhad Subjally, head of trade products for Europe and Americas at Standard Chartered Bank and working group member, to discuss the report’s key takeaways and plans to produce additional guidance documents.
To read the full article, please click here
The Global Supply Chain Finance Forum (GSCFF), comprised of BAFT (Bankers Association for Finance & Trade), Euro Banking Association (EBA), Factors Chain International (FCI), International Chamber of Commerce (ICC), and International Trade and Forfaiting Association (ITFA), has released its new guidance document, Market Practices in Supply Chain Finance: Receivables Discounting Technique.
The paper is the first in a series intended to provide clarity and consistency to the world of supply chain finance, based on the GSCFF’s 2016 Standard Definitions for Techniques of Supply Chain Finance.
To read the paper, please click here
The news was covered by ABA Banking Journal, Business Money, TRF News, Trade Finance Global, TXF .
Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), features in Trade Finance Global’s latest Trade Finance Talks podcast, to discuss the unintended consequences of regulation on trade finance.
Following the release of an ICC report on the topic, the podcast elaborated on the key steps to ensuring that regulation does not hinder the provision of trade finance, including the growing importance of digitalisation.
To listen to the podcast, please click here.