Banks and corporations are increasingly interested in tapping opportunities linked to supply chain transactions as credit availability continues to remain tight after the financial crisis of 2008, according to a report by global transaction banking solutions provider, Fundtech. The US-headquartered firm says that electronic invoice presentment and payment systems can magnify benefits associated with supply chain finance by automating a process that has traditionally been heavily reliant on paper-based and manual practices.
While banks have always been involved in providing letters of credit LC, acting as third parties throughout trade transactions between buyers and suppliers, open account trade is becoming increasingly popular. The demise of LCs has opened...
