The supply chain finance industry is approaching a crossroads. Though widely touted as a way of freeing up cash for corporates and their suppliers alike, the practice faces growing pressure from authorities over accusations of misuse and lax disclosure rules. Coupled with better data sharing and analytics, some SCF providers say it is time for the product to change, writes John Basquill at GTR Review.
Steven Van der Hooft, founder and chief executive of Capital Chains – a Netherlands-based consultancy firm that works with corporates, financial institutions and fintech platforms on their SCF arrangements – says: “What I am hoping is that Supply Chain Finance will shift from almost entirely payables finance to much earlier in the supply chain. That’s where you add more value.”
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