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.
Recent industry developments, such as the ISO 20022 Global E-Invoicing standard, the inception of an European E-Invoicing Service Providers Association and the political drive within Europe to drive adoption will see a critical mass of SMEs adopting E-invoicing.
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, corporates and financing institutions will benefit from a new generation of supply chain financing services.