Today’s supplier finance programmes are great at financing the ‘top tier’ of your supply chain. But what about the suppliers further down that chain- your suppliers’ suppliers?
Getting finance to these companies - often the ones who need it most - can be problematic. The invoices against which banks might lend haven’t been well-specified assets and so have been hard to trade and pass around.
Now a new project from Tradeshift’s digital incubation unit, Frontiers, has used blockchain technology to turn invoices from dumb paper to well-specified digital assets which can be traded. Using that in combination with smart contracts, banks can use invoices from global enterprises as collateral to finance suppliers down into tier 2 and tier 3 of international supply chains.
The first ‘live’ invoice was settled through a Smart Contract and licensed digital cash in September 2019 and now Tradeshift expects the concept to impact supplier finance as early as next year.
In this Working Capital Forum webinar, we hear from Citi's Parvaiz Dalal, who will give some background on emerging trends in supplier finance, and Tradeshift’s Mads Stolberg-Larsen, who will explain the ‘how’ and the ‘why’ of deep-tier finance and the value it can bring to the global supply chain.
Take 45 minutes to be among the first to grasp the competitive advantage this new technology can bring to your corporation.
ModeratorView presenter info
As managing director of Adaugeo Media, Mike helped launch the Working Capital Forum in 2013. Previously he was on the leadership team of the Association for Financial Professionals in Bethesda, MD and was CEO of both gtnews.com and bobsguide.com. Mike writes on working capital issues and trains on the topic for Transaction Banking Academy. Through the Working Capital Forum roundtable series Mike reckons he has lunch with over 100 treasury and procurement directors a year and has the waistline to prove it.
Blockchain specialist, TradeshiftView presenter info
Mads is an economist specialized in business models around blockchain. He is driving the blockchain and Fintech efforts on the commercial side in Tradeshift's digital incubation unit, Frontiers.
MD, Head of Supplier Financing EMEA, Global Head of Strategy and SolutIon Working Capital Finance CitiView presenter info
Parvaiz Dalal is Head of Supply Chain Finance for Treasury and Trade Solutions EMEA for Citi. Based in London, Parvaiz leads the business end to end, including the product, on-boarding and sales capabilities, working in close partnership with sales, coverage and banking partners. Parvaiz moved to London in 2015 primarily to uplift SCF business to next level by fully automating and digitising supplier onboarding and automating the end to end flow doubling SCF EMEA business. Post accomplishing strong growth in business, Parvaiz is now actively working to deploy further product enhancement and is also working on digital authentication to maximize digital productivity, at the same time working with few FinTech players as an extension of overall offering. Prior to this move, Parvaiz worked for five years in Singapore as Trade Head Asean, where he was instrumental in developing talented bench strength for Asia. Parvaiz was also responsible to set up and deliver asset distribution business in Asia and in the last few years he was also tasked to launch commodity financing business in Asia along with his Asean Trade Head role. Prior to Citi, Parvaiz worked at RBS Asia as Regional Trade Sales and Business Development Manager for Asia Pacific.