 RBC is to use Kyriba's working capital platform to offer payables and receivables finance to corporate clients in Canada.
“Optimizing working capital and liquidity with greater speed, efficiency and integration with diverse platforms is critical to the success of large enterprises,” said Lisa Lansdowne-Higgins, Senior Vice President, Business Transformation and Deposits at RBC. “By working with Kyriba, we look forward to providing our business clients with a more robust suite of supply chain finance solutions to enhance their working capital positions.” _______________________________________________________________________________________________________________________________________________ Kyriba is a sponsor and exhibitor at Working Capital Forum Europe, Amsterdam, 28th November.  HSBC is starting the global rollout of HSBC TradePay, the document-free supplier finance solution that it soft-launched in Singapore last year.
With a claimed loan processing speed of under a minute, the solution allows companies to upload a payment file and have their suppliers paid directly from an agreed loan that is only drawn down as each supplier is paid. Once each payment is completed, notifications are automatically sent to both parties. Tradepay is now live in Hong Kong, Singapore, and the UAE, and will be available in the UK from October, in India and Australia from November, and in additional countries in 2024. Bhrigu Singh, Chief Product Officer, Global Trade and Receivables Finance at HSBC said: “Our global trade solutions are designed to help our clients trade with confidence and unlock working capital. In line with this approach, HSBC TradePay is an innovative digital solution that enables companies to seamlessly drawdown trade loans and pay suppliers, improving their working capital while building stronger relationships with their trading partners.”  Mondu: Partnering with Spryker B2B payments company Mondu and composable commerce platform Spryker have formed a partnership to provide a new B2B buy-now-pay-later (BNPL) platform.
The platform aims to offer flexible payment solutions to a wider range of B2B buyers whilst helping businesses increase revenues from online sales. The solution will integrate Mondu’s BNPL solutions with Spryker’s PaaS marketplace creation platform via API-based modules, allowing Spryker customers to access new features for B2B payments, according to the companies’ August 29th press release. These solutions include payment upon invoice, Single Euro Payments Area (SEPA) direct debit, and instalments. This collaboration furthers both Mondu and Spryker’s goals of helping businesses grow, according to Matthias Letzeller, Mondu’s Head of Partnerships. “We see our partnership with Spryker as an ideal fit for us at Mondu, due to our shared mission to help other businesses focus on growth. We both support B2B companies in scaling their online sales through the best online experience for their customers,” he said. “Spryker has built a great platform to create a wonderful ecommerce journey, and with Mondu that journey continues with the best payment experience. Combined, we can help businesses supercharge their sales, increase revenue, improve cash flow and operational efficiency.” Manishi Singh, Spryker’s Senior VP of App Composition Platform added, "We are thrilled to welcome Mondu to the Spryker partner ecosystem. Our shared vision of efficient innovation will enable businesses to improve their customer experience while maintaining the flexibility needed to adapt to changing customer needs. “By joining together Mondu’s seamless payment solutions and Spryker’s best-of-breed composable commerce approach, enterprise customers can anticipate an unparalleled purchasing experience. This partnership highlights our commitment to providing enterprises with the tools and support they need to accomplish their current and future business goals.”  Standard Chartered has launched a new investment product linked to receivables finance assets originated by Singapore fintech Olea. The bank will target high-net-worth individuals in Singapore, Hong Kong and Dubai.
The launch marks a milestone for Olea, which began life in 2021 as a joint venture between Standard Chartered and Linklogis with the aim of 'bringing together institutional investors seeking opportunities in an alternative asset class with businesses requiring supply chain financing.' The launch comes after last year's announcement of a partnership between Olea and Vayana Network which later launched a receivables financing program for an undisclosed 'large Indian manufacturer.'  Visa and virtual payments technology provider Conferma Pay have announced a four-year extension of their collaboration on Visa Commercial Pay.
Launched in 2020 to a select audience of early adopters, Visa Commercial Pay’s features and connectivity with invoice management platform are designed to help corporate businesses automate payments and improve cash flow. The four-year extension secures additional investment in Visa Commercial Pay’s suite of tools – the Visa Commercial Pay mobile app, Visa Commercial Pay Travel and Visa Commercial Pay B2B. It will also enable both organizations to expand the offering in Asia, Latin America and the Middle East. Visa Commercial Pay clients can look forward to new features like digital wallet tokenization alongside continued commitment to efficient payments, according to Gloria Colgan, Senior Vice President of Global Product Visa Commercial Solutions. “The pandemic exposed significant inefficiencies with traditional payment methods used by businesses,” she said. “Our collaboration with Conferma Pay brings together two leaders in their respective fields and the result is a far more efficient payments system. With our collaboration set to continue, more clients and end users will be able to take advantage of new features such as the digital wallet tokenization and hotel cards.” Jason Lalor, CEO, Conferma Pay added “The world has been increasingly moving towards more digitized payments and the launch of Visa Commercial Pay has supported this transition in the commercial payments environment. Our deeper engagement with Visa will help to rapidly accelerate the growth of virtual payments for businesses,” “We have a fantastic working relationship with Visa that has enabled the rapid delivery of software to simplify payments for businesses globally. Based on our shared vision for a more digitized payment landscape, our expanding network of B2B partners means that Visa Commercial Pay will continue to grow and remove more barriers to business.”  HSBC has invested $35 million in supply chain finance company Tradeshift.
The investment forms part of a new joint venture focused on developing embedded services across trade and e-commerce marketplaces, streamlining the flow of working capital across supply chains. Tradeshift and HSBC announced the investment as part of a funding round expected to raise at least $70 million. HSBC will invest the $35 million in two stages, and also join Tradeshift’s board. Other contributors to the funding round include AYTK Limited, LUN Partners Group. Fuel Venture Capital, Doha Venture Capital LLC, Notion Capital, IDC Ventures and The Private Shares Fund. All are existing shareholders. Tradeshift said that it planned to use the injection of capital to add more SaaS, B2B marketplace and embedded financial services, adding that it was also considering some acquisitions. Barry O'Byrne, CEO of Global Commercial Banking at HSBC, said “We are very excited to partner with Tradeshift to help businesses and their suppliers trade more smoothly using world-class technology and solutions that the joint venture will deliver. “This agreement supports our strategy of being a digital first bank, which includes our commitment to partnering with fintechs and embedding our solutions into the platforms of others.” Christian Lanng, CEO and Co-founder of Tradeshift, said “Our deepening partnership with HSBC delivers a strong foundation from which to scale and accelerate our vision of a trade network that creates economic opportunity for businesses everywhere. “HSBC’s reputation and global infrastructure bring instant credibility and broad appeal to any financial solutions brought to market through the Tradeshift platform. It’s transformative, and it’s a tremendous validation of the innovation and product architecture we have developed over the past decade.”  Almost nine in ten suppliers are confident that their customers will maintain purchasing volumes for the rest of the year, despite economic turbulence, according to new research from PrimeRevenue. The working capital firm surveyed a total of 1675 suppliers on its platform in Q1 & Q2 2023.
“Over the last three years, suppliers have encountered prolific disruption and recalibration. Now, moving into the second half of the year, there are more reasons for optimism than there were just months ago –though, for the foreseeable future, a great deal of uncertainty still remains,” said PrimeRevenue CEO PJ Bain. Among the report's main findings were:
The full version of the report is available here.  Lutz: Significant increase expected Working capital marketplace CRX Markets has broken even for the first time.
The Munich-based company achieved the milestone in the first half of 2023, with a financed volume of EUR 11.1 billion and revenues of EUR 5.5 billion – a revenue figure double that of 2022. CRX manages a monthly financing volume of roughly EUR 2 billion across 60 countries, and plans to expand its financing channels and broaden its payables and receivables financing across the second half of the year, according to CEO Frank H. Lutz. “We are proud to have already reached the break-even early in the year, despite the tense geopolitical and economic situation," said Lutz. “Considering the current developments, we also expect a significant increase in financing volumes for 2023 compared to the previous year and revenues in the double-digit million-euro range. “In addition to the continuous development of the CRX Markets platform, we plan to deploy further financing channels and thus focus on an even broader offering in payables and receivables financing in the second half of the year.”  The Working Capital Forum has published its latest Briefing on reporting SCF programmes under FASB regulations.
The report is based on a 45-minute webinar featuring experts from EY and Taulia, and includes 'top tips' for treasury and finance executives preparing to report SCF exposure for the first time. The full report and the webinar can be accessed through the Working Capital Forum's Resources area.  Skyscend Capital, a subsidiary of SaaS blockchain accounts payable invoice automation and supply chain financing company Scyscend Inc, is to partner with Encore Funding to expand the functionality of its technology solutions.
Skyscend will use Encore’s funds and resources to enhance the supply chain financing features offered by its Skyscend Pay platform, notably allowing immediate payment of approved invoices. This functionality builds on Skyscend’s current AI, ML, and OCR-based features designed to facilitate timely and accurate payment. Bob Zadek, President of Skyscend Capital, lauded the additional functionality the partnership would bring to a platform that “empowers customers and suppliers with a self-service tool that grants control over payment processes.” "With the support of Encore Funding, Skyscend Capital now possesses the necessary funding to provide on-demand payment of approved invoices to its customers and their suppliers" he said. Chad Eberly, General Manager of Encore Funding, said that they were drawn to the partnership by Skyscend’s use of blockchain. He explained "We were impressed by Skyscend Pay's utilisation of blockchain technology, which enables seamless real-time access to approved invoices within the customer's accounting system. "Encore is fully prepared to provide unwavering support to Skyscend Capital's expanding base of business, and allow for another Encore client to take advantage of the capital we provide to entrepreneurs."  Global receivables finance provider Liberis has announced an initiative that awards its SME customers for eco-friendly purchases, set to go live this month.
Developed in conjunction with Liberis’ partners across the financial services and payments industries, ‘Cashback for Green’ will offer SMEs the opportunity to claim cashback on their factor fee if funding is used for green investments and purchases. Cashback for Green will be available in all markets Liberis operates in, and SME customers will be able to apply online. Liberis will also offer SMEs support as they seek green investment opportunities. The initiative aims to support SMEs who see sustainable development as a key priority, but struggle to implement green policies due to lack of support and guidance. Liberis CEO Rob Straathof explained that Cashback for Green is a response to increasing demand for sustainable funding solutions from SMEs across the world. ‘Throughout our conversations with global SMEs, the market demand for impactful green funding solutions is a growing priority. With Cashback for Green, we’re encouraging SMEs to make more sustainable investments, as well as highlighting the impact and benefits of implementing these green practices” he said. “We are truly committed to supporting SMEs towards a greener future, and collectively combatting the effects of climate change.”  According to new working capital research from The Hackett Group, the largest US companies found it harder to extend payments to suppliers in 2022. The research also suggests that these companies have hit a ceiling on the practice of delaying supplier payments to bolster balance sheets.
Data collected and analysed from the US’ largest 1,000 public companies showed that the number of days companies take to pay suppliers, or days payable outstanding (DPO), decreased by five days or 8% on 2021 levels. Overall working capital performance, or cash conversion cycle (CCC), also worsened by 3% in 2022. Contributing factors include inflationary pressure on costs, supply chain disruptions and increased geopolitical instability. On the other hand, receivables, or day sales outstanding (DSO), improved by 5% due to significant improvements in customer durables, recreational products, airlines and oil and gas driven by continued economic rebound post-pandemic. Inventory levels, or day inventory outstanding (DIO), also improved by 3% due to strong demand, the use of technology to optimise inventory management and strategic improvements implemented due to the pandemic. Hackett’s research suggests, however, that these are eclipsed by the significant degradation in payables. The companies surveyed now have nearly $1.9 trillion in excess working capital, including $666 billion in excess inventory, $665 billion in payables, and $531 billion in receivables. Top performers now collect from customers 42% (19 days) faster, hold 59% (41 days) less inventory, and take 52% (25 days) longer to pay suppliers. The research found the strongest working capital improvements in the air travel, hospitality recreation, oil and gas and wholesale distribution industries. The weakest working capital performance was found in the motor vehicle, semiconductors and equipment, computer hardware and peripherals, and household and personal care industries. Revenue growth increased by 15% in 2022 – a slowdown on 2021 levels but still far exceeding the 4% to 5% pre-pandemic average. Unusually, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 3% in 2022 due to pressures on raw materials and labour. Cash on hand as a percentage of revenue also dropped by 19%, nearly returning to pre-pandemic levels, as companies used cash hoarded during the pandemic to improve operational performance and pay off debt. Shawn Townsend, Director at The Hackett Group said “After the ‘great working capital reset’ of 2021, this is a year of course correction and growth, despite significant challenges in the business environment. As we predicted in mid-2022, it appears that companies have reached an inflection point in their ability to improve their balance sheet by extending payments to suppliers. “For a decade or more, this practice has been the easiest way for companies to improve their working capital performance, and companies have heavily relied on it. But now, supply assurance is a bigger challenge than ever for most companies, with many facing issues related to supplier criticality, competition for resources and the availability of supply. “We expect this trend of worsening payables performance to continue in 2023, especially as the restructuring of several major regional banks will likely lead to less availability of supply chain finance assets. “In addition, the new accounting disclosure rules introduced by the Financial Accounting Standards Board (FASB) requiring companies to disclose information about their supply chain finance programs has softened the demand for such tools.” Hackett Group Director István Bodó added “It’s interesting to note that the working capital performance gap between typical companies and top performers continues to widen, driven by the degradation of the median performers rather than the improvement of the top performers as seen in previous years. The ratio of top-to-median performance usually traded at an average of ~2.95 in the last few years has now widened by 10% to reach 3.30. “With higher interest rates, persistent inflation, continued market unpredictability and many of the other major challenges companies are facing, companies must focus on optimising working capital if they are to remain competitive long term,” said Bodó. “Cash flow management should be a top priority on the corporate agenda to provide liquidity for strategic investments.”  Santander Corporate & Investment Banking (Santander CIB) has taken a stake in trade finance fintech Komgo through what it describes as a 'strategic equity investment.'
Santander says the move is designed to accelerate the digital transformation of several trade and working capital products. As a result of the partnership, Komgo, who acquired Global Trade Corporation in 2022, plans to expand its trade finance proposition further. Santander CIB will contribute tailor-made trade and working capital solutions for Komgo’s client portfolio across Europe and the Americas. The bank also plans to use Komgo’s technology to improve communication with clients and further digitise in the area of trade finance and commodities. As a result of the investment, Santander wants to help clients "simplify and digitalize trade finance” according to Santander CIB’s Global Head of Trade and Working Capital Solutions Mencia Bobo. She said “Partnering with Komgo means we can automate communications, optimise end-to-end processes, reduce operational risk and deliver the best client experience. In addition, it will enable us to innovate and find synergy in our broad Trade Finance business.” Souleïma Baddi, CEO of Komgo added: “As a leading financial institution and one of the largest trade banks globally, Santander CIB’s investment in Komgo adds another layer of trust to our network. We are especially proud to be supporting its clients’ transformation journey.”  Barclays has invested £3m in implementing Trade Ledger’s working capital platform.
The three-year deal will offer end-to-end credit automation for Barclays Corporate clients in the UK and throughout the world. Through the Trade Ledger platform, which uses API-driven SaaS technology, Barclays hopes to offer a “client-centric” onboarding and loan management designed to eliminate labour-intensive manual processes facilitated by access to real-time data – including a client’s accounting platform. The move is aimed at increasing the flexibility of corporate finances, according to James Binns, Global Head of Trade and Working Capital at Barclays. “Businesses need access to reliable, flexible finance now more than ever,” he said. “Investing in and implementing the Trade Ledger Platform will allow us to make lending decisions faster and more efficiently, using real-time data drawn from a rich variety of sources, and powerful workflows. “This drives faster time-to-money, reducing the cost of funding in supply chains, which has huge benefits for our corporate banking clients and the communities they support.” Martin McCann, CEO and co-founder of Trade Ledger, said: “Our common mission to create a world where every business gets the capital it needs to thrive, is key to our strong working partnership with Barclays. “We are delighted that Barclays Bank has chosen Trade Ledger to support its offering to business borrowers, and that it has the confidence in our business vision to make this investment. “Our history with Barclays goes back to 2018 when we won the Barclays Open Innovation Challenge and, from then on, we have worked with the bank’s leadership team to identify areas of the bank where our technology could be applied to deliver transformational value to the bank’s lending processes.”  Treasury management system provider GTreasury is to partner with working capital platform provider C2FO to provide what they describe as “Enhanced liquidity management solutions.”
With the partnership in place, GTreasury clients can combine end-to-end cash visibility and AI-enabled liquidity requirements forecasting with features designed to optimise cash flow and unlock liquidity. They will be able to accelerate both payments to suppliers and payment on invoices to improve cash conversion cycles. The solution aims to offer businesses real-time visibility into cash positions and the on-demand flexibility to meet critical cash management goals. C2FO’s Senior Vice President of Partnerships, Allison Baker, said the firm was, “Thrilled to partner with GTreasury to provide enterprises with a best-in-class comprehensive liquidity solution. Enterprises can leverage both sides of their balance sheet through our partnership to access the liquidity they need to navigate today’s rapidly changing environment.” GTreasury’s Global Head of Corporate Development, Terry Beadle, said “With this strategic partnership with C2FO, we are delivering on our commitment to provide a suite of best-in-breed products for tTreasury, rRisk, and cCapital efficiency. This partnership will allow our customers to extend their treasury workflow, resulting in further optimisation and management of their cash.”  C2FO has formalised its relationship with the Open-es ESG monitoring platform, allowing companies using both Open-es and C2FO to integrate ESG performance criteria into their working capital finance programmes.
“C2FO is proud to join the Open-es initiative. Supporting companies on a path to develop more sustainable practices and achieve their ESG goals reflects our mission to build a better and more inclusive financial system.,” said C2FO Chief Sales Officer Colin Sharp. “We are equally thrilled to partner with Open-es to create a seamless solution that ties ESG goals and working capital together, making it easier than ever before for businesses to achieve their unique business ESG goals. "  Technology channel finance veteran Jonny Singleton is to join Peridot Group as chief commercial officer from Dell Technologies. The move marks a switch from the client side for Singleton after an 11 year career at Dell, where he has co-led their Global Working Capital Programme since 2019. He has also held senior roles at Lenovo and GE Capital.
"We are excited to welcome Jonny Singleton to Peridot Group as chief commercial officer," said David de Buck, CEO at Peridot. "Jonny's extensive experience in working capital solutions coupled with his familiarity with Peridot as a solutions provider will enhance our position as an industry leader." Peridot Group began as a buy-out from IBM Global Financing in 2021 and today includes Peridot Financing Solutions (PFS) and Global Supply Chain Finance (GSCF). It has finance programmes in 26 currencies and 20 languages and more than 2,500 customers across 75 countries.  The International Accounting Standards Board (IASB) has issued its new disclosure requirements for supply chain finance programmes, following a similar move by its US counterpart, FASB, late last year.
The amendments are a modification of existing IFRS Accounting Standards and require a company to disclose the following information about their supply chain finance programmes:
The Working Capital Forum has arranged a webinar with EY and Taulia to help treasurers understand and report under the new rules. Registration is free of charge using the button below. A practical guide to reporting Supply Chain Finance programmes under the latest FASB rules23/5/2023
 FASB regulations now require corporations to disclose their supplier finance arrangements.
In April 2023, The Working Capital Forum brought together experts from EY and Taulia to offer a practical guide to reporting under the new rules. This report summarises the key findings of the webinar and offers three key action points for every treasury team. Download the full report >>> |
