Moving into 2020, companies are setting new goals to improve and ultimately transform the supply chain. The fact is, consumers are constantly expecting faster and more efficient services. What does this mean for the supply chain? As user experiences become increasingly focused on convenience, the supply chain must become increasingly agile to adapt to shifting standards of operation.
Today, small to mid-sized enterprises (SMEs) are presented with a menu of options to choose from when seeking trade finance options. In the wake of open account trade financing, the rise of pre-export financing has become increasingly prevalent among companies seeking alternative cash injection options.
Accounts payable financing is a solution for companies seeking to extend the terms on their supplier invoices. Notably, accounts payable financing is otherwise referred to as vendor financing or trade credit. This flexible financing solution helps companies by providing additional working capital without racking up more debt and encumbering company assets.
Trade finance is a centuries old industry that remains true to its traditional business model. Traditional it is, but the industry has seen little to no change or adaptation over the past decade despite the digital disruption present in all business sectors. Whether the business of trade addresses the shifting landscape or not, the trade finance industry is increasingly faced with both opportunities and threats.
