Orbian named Best Supply Chain Finance Provider for the 13th time!
Technology investment fuels growth in supply chain finance
According to a September report from Allied Market Research, “The global supply chain finance market was valued at $6 billion in 2021 and is projected to reach $13.4 billion by 2031, growing at a [compound annual growth rate] of 8.8% from 2022 to 2031.”
Technological advancements in digitalization and automation have made supply chain finance (SCF) more accessible and efficient, which has led to a proliferation of platforms and solutions that streamline the processing of invoices and payments, making it easier for companies of all sizes to implement SCF programs.
The increased complexity of supply chains makes managing working capital efficiently much more challenging. SCF can bridge the gap between payment terms and the actual flow of goods—helping buyers and suppliers improve their cash flow by accelerating receivables for suppliers and extending payables for buyers.
It is also a relatively safe investment in uncertain times. And it’s not just banks that are getting in on the act. Institutional investors view it as an attractive asset class; while fintech SCF platforms, often in collaboration with banks and other alternative investors, are increasingly helping to close the trade finance gap.
Regulatory changes, including changes in trade finance regulations such as the introduction of the UK’s Electronic Trade Documents Act of 2023, can encourage the adoption of SCF by reducing legal and operational barriers. It’s worth noting that there has also been a global trend toward SCF scrutiny. In the US, the Financial Accounting Standards Board issued an Accounting Standards Update in September 2022, which came into effect in 2023, requiring disclosure of key SCF program terms and obligations on the balance sheet in quarterly and annual reports.
There is also growing demand for businesses to identify and address human rights and environmental risks along their supply chains. For example, the EU’s 2019 Green Deal requires commodities traded through the EU and products placed on the EU market to be sourced and manufactured responsibly. Meanwhile, the EU’s Corporate Sustainability Reporting Directive came into effect in January 2023.
While consumers’ attitudes have significantly influenced environmental, social and governance (ESG) goals, vulnerabilities across global supply chains are forcing businesses to rethink SCF. Increasingly, SCF is being used as both an incentive and an enabler to encourage sustainability across supply chains, and both banks and nonbanks are increasing their sustainability-linked SCF offerings.
Orbian named Best Supply Chain Finance Provider (non-bank) for the 13th time!
Being solely focused on SCF ensures what the provider says is an extremely long-term and personal approach to clients. Relationship managers remain in charge for the lifetime of each SCF program, for example.
Customers get unlimited funding capacity at competitive pricing, thanks to Orbian’s partnerships with a large number of international and local banks. Multibank funding plus automation enable Orbian to guarantee high levels of security, easy implementation, low cost, and assured liquidity for global corporations and their strategic supply chain partners.
View the original article here.