Current Issues

We serve as the industry’s voice before multilateral agencies, export credit agencies, finance ministries, central banks and legislative bodies. We collaborate around the world with other industry groups and trade associations. As a member of BAFT, we represent you in continually striving to:

  • develop international standards such as the “Master Participation Agreement” for trade risk
  • support the “national treatment” of financial firms in the markets where they do business
  • promote the harmonization of financial services regulation and supervision between countries
  • coordinate with private and public sector stakeholders to ensure that governments, multilateral agencies, and leading policymakers around the globe have substantive feedback and reliable data on market dislocations and industry trends
  • Advocate for the positive consideration of trade finance and transaction banking under the Basel capital and liquidity framework
  • Use common Trade Finance Definitions to standardize industry/regulatory terminology and facilitate prioritization of trade risk in sovereign events
  • Ensure the continuation of benefits afforded companies via ECA financing

Policy News

Global Supply Chain Finance Forum Issues Payables Finance Guidance to Drive Further Clarity on Terms and Techniques

by GSCFF Office of Communications | Nov 12, 2020
Payables Finance Technique - Market Practices in Supply Chain Finance is the second in a series of guidance documents set to further encourage industry-wide adoption of uniform terms and techniques.

The Global Supply Chain Finance Forum (GSCFF) – an initiative comprising the International Chamber of Commerce (ICC) Finance for Development Banking Commission, BAFT (The Bankers Association for Finance and Trade), the Euro Banking Association (EBA), FCI, and the International Trade and Forfaiting Association (ITFA) – has released a new guidance document on payables finance, to aid financial institutions, accounting firms, rating agencies and regulators in gaining clarity and consistency on the various terms and techniques.

While uptake and feedback on the 2016 Standard Definitions for Techniques of Supply Chain Finance has been positive, much work is still required to further align terminology across the complex ecosystem of stakeholders involved in international supply chains. 

As part of this drive for clarity, the second Market Practices in Supply Chain Finance publication focuses on payables finance – a technique and form of receivables purchase, flexibly applied, in which sellers of goods and services sell individual or multiple receivables (represented by outstanding invoices) to a finance provider at a discount. In turn, the guidance document takes a wider look at this important technique and provides a comprehensive overview on how payables finance can be used in practice.

“When all parties use similar techniques and terminology, it makes for a streamlined and efficient process,” said Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank and Chair of the GSCFF. “Our hope is that this report will lead to an industry-wide, uniform adoption of the payables finance technique.”

The publication represents a go-to resource that finance providers can refer to for guidance on common market practices in risk management, documentation and operational handling for payables finance transactions. 

To read the full guidance document, visit our Library of Documents under the Industry Definitions and Guidelines section or click here.

About the Global Supply Chain Finance Forum:
The Global Supply Chain Finance Forum was established in January 2014, as an initiative of these industry associations to address what has been recognized as a need to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance and for SCF-related techniques.