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Trade finance is a critical tool in supporting global trade for both buyers and sellers, particularly smaller businesses.Yet these financing products arent without their risks and drawbacks, and today, criticism continues to mount for certain invoice financing tactics in particular.High-profile corporate collapses and questionable invoice discounting programs run stanley mug by major conglomerates has led financial officials in the U.K., U.S., Australia and beyond to take a closer look at products like factoring and supply chain finance.Yet when used responsibly, supply chain finance 鈥?a process in which fina stanley thermoskanne ncing is approached from a buyers accounts payable AP side, not from the suppliers accounts receivable AR side 鈥?can be effective at promoting stanley cup healthy cash flow for both ends of a B2B trade transaction.Raul Esqueda, president of supply chain financing company 1st Commercial Credit, recently spoke with PYMNTS to explore the benefit of financing corporates payables at a time when invoice factoring on the receivables side remains the go-to trade financing strategy for many businesses today.An Alternative To FactoringFactoring can be a helpful cash flow management tool for suppliers, although its not without its own criticisms. Opponents argue factoring and other invoice financing solutions perpetuate the ability for a corporate buyer to extend payment terms and delay payments, forcing a vendor to turn to a third party to finance unpaid receivables.Increasingly, Esqueda said, hes als Wihp Joann to Shutter All Outlets
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