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Geoffrey Wynne has contributed an article titled “Financing receivables: A look back and the shift to a deep-tier, digital future” to the initial issue of Trade Treasury Payments: “There’s No New Normal”, published as part of the independent media and data intelligence platform’s launch.

Over the past decade, traditional invoice financing has evolved significantly into more complex and expansive forms of receivables finance including supply chain finance (SCF). What were straightforward receivables purchase agreements (RPAs) have transformed into a dynamic, tech-driven ecosystem involving multiple parties and digital instruments.

The article looks at the following:

  • The evolution of RPAs into SCF: Traditional bank-supplier RPAs have developed into broader SCF structures, often initiated by buyers, now including non-bank participants and others.
  • The digitalisation of trade finance: With the 2023 Electronic Trade Documents Act (ETDA), instruments such as promissory notes and bills of exchange can now be issued and traded in digital form on secure platforms.
  • A look forward to Deep Tier Financing: Financing which is extending beyond direct suppliers (tier 1) to others in the supply chain, marking a shift towards Deep Tier Supply Chain Finance (DTSCF).

The article is accessible here, and the full magazine can be downloaded here.