Fundtech whitepaper: e-Invoicing provides new avenues for credit

White paper & report | 25 August 2011

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Trade finance is one of the most stable forms of lending and can become an important profit generator for banks. Electronic invoice presentment can help banks promote and expand this business.

With credit availability remaining tight following the financial crisis, banks and corporations alike are more attuned to the financing opportunities linked to supply chain transactions. With the visibility and transparency of trade transactions and the link between funding and trade activities, supply chain finance lessens the risk associated with traditional lending.

Electronic invoice presentment and payment (EIPP) systems can amplify the many benefits of supply chain finance by automating a process that traditionally has been hampered by paper-based manual methods. By automatically delivering real-time information to banks involved in trading transactions, EIPP makes it possible to automate efficient financing based on current insights into companies’ health.

This paper describes the various methods of supply chain finance and how EIPP can be deployed to magnify their benefits.