LIBF Podcast –  Supply Chain Finance: transactional finance or smoke and mirrors?

LIBF Podcast –  Supply Chain Finance: transactional finance or smoke and mirrors?

LIBF Head of Trade and Transaction Banking, Alex Gray, talks to John Bugeja and Lionel Taylor from Trade Advisory Network about supply chain finance in relation to the Greensill Finance failure and political fallout.

 

About the LIBF Trade Finance Podcast

The LIBF Trade Finance Podcast features interviews and insights from leading figures in trade finance and is available on most podcasting channels. The London Institute Banking & Finance advances banking and finance by providing outstanding education and thinking, tailored to the needs of business, individuals, and society.  John and Lionel are the authors of the core text for the LIBF Certificate of Supply Chain Finance.

The post pandemic evolution of supply chain finance – Trade Finance Global

The post pandemic evolution of supply chain finance – Trade Finance Global

evolution of supply chain finance

Published in Trade Finance Talks: ‘A pathway towards sustainable trade finance’ — Spring 2021
LONDON, March 16, 2021.  Trade Finance Global

Authors: John Bugeja and Lionel Taylor

As MSMEs are weaned off fiscal support, a radical new attitude to how they access working capital will be needed more than ever.

COVID-19 has had a severe overall effect on global trade, with disruptions to supply chains and government-enforced lockdowns damaging business across the globe. According to OECD reports, global GDP was projected to fall by 4.5 percent in 2020 with a pick-up of 5 percent in 2021. However, as countries are being hit by new waves of the virus, the expected 2021 recovery will be slower than forecast. MSMEs, who by their nature have limited capital and personnel resources, are overrepresented in sectors such as wholesale distribution, which have been heavily hit by this downturn in business activity.

Monetary and fiscal measures provided by governments across the globe to ease the burden on MSMEs have provided some relief, but this is not sustainable and as support is reduced, it is expected that the level of insolvencies will increase. This will shake business confidence at a time when any increase in economic activity translates for the surviving, but financially weakened, MSMEs into a more immediate need for working capital finance, as they look to take advantage of a recovering order book.

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Trade Finance Global LogoTrade Finance Global (TFG) is a leading trade finance platform. It assists companies to access trade and receivables finance facilities through our relationships with 270+ banks, funds and alternative finance houses.

Its award winning educational resources serve an audience of 160k+ monthly readers (6.2m+ impressions) in print & digital formats across 187 countries, covering insights, guides, research, magazines, podcasts, tradecasts (webinars) and video.  https://www.tradefinanceglobal.com/about-us/

Digitalisation in trade: The situation report – Berne Union Yearbook 2020

Digitalisation in trade: The situation report – Berne Union Yearbook 2020

Originally published in The Berne Union Yearbook 2020

John Bugeja, Managing Director at Trade Advisory Network explores the current landscape on trade digitisation in depth. Where are we now, why is digitisation necessary and where are we heading?

What Is digitalisation?

Digitalisation is the use of electronic records to drive processes through the use of interfaces or through integration. The precursor to digitalisation was the use of telex and cable to initiate transactions in place of paper-based communications between banks. This began to change in 1973 when SWIFT was formed by 239 banks from 15 countries. In order to improve efficiency, eliminate re-keying errors and achieve ‘straight through processing’ functionality, banks quickly started to build interfaces connecting their processing platforms to their SWIFT gateways.

The challenge and the business benefits

The challenge for finance providers now is to use data produced in corporate supply chains to drive financial interventions. Currently, much of this data is printed to paper and then presented to banks who then enter the data into their own systems to create new electronic records used in transaction processing. At Trade Advisory Network, we are frequently approached by Fintechs who purport to have solved some element of this challenge. Our first question is typically: ‘what problem are you trying to solve?’ We can categorise the potential business benefits under a number of headings…  View full article (PDF)

 

Berne UnionThe Berne Union is an international not-for-profit trade association representing the global export credit and investment insurance industry. The Berne Union Yearbook is an annual publication providing up-to-date information about members and the current policies and strategies of international economic institutions. A copy of the full publication can be downloaded at this link: https://www.berneunion.org/Publications