Author: Anita Hawser, Gordon Platt

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Trade Finance Providers

 The Power Of Global Connections
 by Gordon Platt

  Best Trade Finance Providers of 2015

  Winners Profile

Supply Chain Finance Providers

 New Entrants Fil A Gap by Anita Hawser

 Best Supply Chain Finance Providers of 2015
 
Winners Profile


NEW ENTRANTS FILL A GAP

Presenting the World’s Best Supply Chain Finance Providers 2015.

The past five years have seen a number of new nonbank entrants in the supply chain finance space, which until fairly recently was dominated by a handful of large global trade banks. These new entrants are not only reinvigorating supply chain finance in a way that few banks could, perhaps, given their restricted balance sheets and the impact regulation is having on their ability to fully extend financing to where it is most needed—emerging markets and small to medium-size enterprises.

Many years ago a former Hewlett-Packard financial executive spoke about the need for exchanges where companies could sell their accounts receivable or invoices to potential investors, so the companies could enhance their working capital. That reality is here, and has been for a number of years now, but in addition to The Receivables Exchange in the United States, the United Kingdom now has Platform Black, which leverages Cloud-based technologies to match suppliers with a wide range of nonbank investors. Leveraging a wider pool of funders and offering finance covering 100% of the invoice, platforms like these offer suppliers a potentially easier and quicker way of obtaining financing than traditional bank or buyer-led supply chain finance programs.

Time will only tell how many more of these platforms will emerge, and whether the market can sustain them all, but the financing need is apparently great, with the Asian Development Bank reporting a global trade finance gap of $1.9 trillion in 2013 and a 30% rejection rate among banks for trade finance applications. The time for innovation in supply chain finance is now, and winners in this year’s World’s Best Supply Chain Finance Providers reflect some of the newer, more innovative providers, as well as the more well-established players who realize they cannot afford to remain complacent.

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