Industry insiders are hopeful that access to funding and insurance will remain resilient across the wider supply chain finance (SCF) market, despite the disastrous collapse of London-based behemoth Greensill.
Steven van der Hooft, founder and chief executive of SCF consultancy Capital Chains, says he does not expect financial institutions to withdraw funding in situations where they have a direct relationship with a corporate or its suppliers.
“But where you have an investor that doesn’t have a relationship with the corporate, and is investing in a fund run by – in this case – Greensill, they are quite detached from the physical trade,” he tells GTR.
“They’re just looking for yield. Those kinds of investors are more likely to pull their funding lines, afraid they might be investing in a similar scheme.”
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an article by John Basquill at Global Trade Review