The limited availability of credit following the financial crisis coupled with the potential consequences of Basel III has resulted in a crunch on lending to corporates. Banks and corporates have become more attracted to financing opportunities linked to supply chain transactions. In a recent report, Celent even went as far as to ask whether supply chain financing is ‘flavour of the year’.
Companies are looking to unearth assets by better managing cash flows and working capital. Enrico Camerinelli of Aite Group has recently emphasised, “The lack of credit requires more attention to the dynamics of cash”. One method of achieving this is to bring e-invoicing into the financial supply chain. E-invoicing is attractive as it makes it possible to automate efficient financing while maintaining the granularity required for audits. E-invoicing is therefore enjoying a surge in popularity amongst SMEs and is quickly reaching its critical mass partly thanks to the introduction of an ISO standard. E-invoices’ ability to comply with regulations of various countries has also aided uptake in recent years. A renewed focus on supply chain finance has been a catalyst for turning the spotlight on e-invoicing once again, and as it’s rolled out more widely, firms are starting to reap the benefits.
Fundtech whitepaper: E-invoicing provides new aveneus for credit
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