IFG InSights, News and Media

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Next wave innovations in supplier finance
Throughout this decade with the growth of buyer-led supply chain finance programs or buyer-sponsored early payment services, teamed with the increase in attention to SCF services in general, we have witnessed significant technological transformations within the industry.
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Supply Chain Resilience and Small Suppliers
A recent Harvard Business Review article paints a dire picture for small and mid-sized suppliers (SMEs), and for the larger companies that depend on them. “A Financial Crisis is Looming for Smaller Suppliers” argues that the global pandemic is only the latest challenge to challenge the liquidity of small companies.
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Virtual Cards and Early Payment Solutions
With the growth of financial technology, Accounts Payable has become an area of opportunity for corporate buyers.  V-Card offers a new opportunity for savings through rebates, but its acceptance among suppliers is capped by high fees.  Savvy buyers are adding early payment solutions to their Accounts Payable mix - providing both a savings opportunity and a benefit for their critical suppliers.  These solutions can work together as part of a smart mix of benefits for buyers and suppliers alike.
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Risk Management in Early Payment Solutions
Any entity that funds the early payment of invoices takes on risk - even when the invoices are approved and scheduled for payment.  If you’re considering Supply Chain finance, it’s vital to understand how your funding partner will choose to manage risk - and the downstream implications of that risk management for your business.
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What Happens When Machine Learning Finance Models Fail
These are some strange times. Look, we have $16 trillion of negative yielding bonds, that’s T, for trillion. I’m asked by non-financial people why anyone would want to buy negative yields (you pay to hold them, btw) and I reply, it’s not about income, it’s about trading that rates will fall further.
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Large Companies Lack Cash to Fund Their Supply Chains
The popular opinion has been that many large American companies are flush with cash. In fact, surveys from some reputable institutions support this view. The AFP’s corporate cash survey found during the second quarter of 2019, U.S. businesses continued to build their cash and short-term investment holdings. This is intuitively supported by events like the corporate tax cut last year.
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PPC: On Late Payment — Regulate, Shame or Just Deal with It?
There was some recent shaming of some very large companies by the UK government that did not comply with the Prompt Payment Code (PPC). Seventeen large companies, including heavyweights such as Vodafone, Rolls Royce, SSE and British Sugar, were suspended pending promises to fall into line.
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Addressing S2P Platform Misconceptions Around Early Pay Programs
Few source-to-pay platforms, payment processors or other networks have been able to develop early pay dynamic discounting management (DDM) or supply chain finance solutions that have added significant revenue to their enterprises. (See Why Platforms Need to Monetize Their Supplier Ecosystem.)
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Has Off-Platform Lending’s Time Finally Arrived?
Has Off-Platform Lending’s Time Finally Arrived?   DAVID GUSTIN, Chief Strategy Officer, The Interface Financial Group January 15, 2019 8:00 AM |   “You would rather have the cash than borrow against it. No one says I would like a lot of inventory so I…