“It would be unfair to say that all that Greensill did was wrong” [Original Title: “Onterecht om de Greensill-werkwijze bij het oud vuil te zetten”]
The original core of their offering “plain vanilla reverse factoring”, is characterised by short-term debt on credit worthy players with a high-volume & low-margin approach. On its own a solid product for all involved, but not necessarily a profit center. For a bank or FinTech however, this supply chain approach is a key enabler for future/additional business opportunities in the wider eco-system of the anchor corporate.
-> Reverse factoring provides real time insights in orders and payments in a particular value chain and, especially for emerging markets, allows for financial inclusion of companies and MSMEs that might have had difficulties accessing third party funding on their own.
Read the whole article here (Dutch)
an article by Mathijs Rotteveel and Rutger Betlem at Het Financieele Dagblad (NL)