Amid news of investors suspending funding to Greensill Capital (UK) Ltd., industry players fear it could cause a ripple effect on the supply chain finance market as a whole, to the detriment of small businesses in need of liquidity now more than ever.
“There are so many good things about supply chain finance,” said Steven van der Hooft, CEO of supply chain finance consultancy Capital Chains, in an interview.
This form of finance is particularly valuable for small and medium-sized enterprises as it gives them access to funding that may have otherwise been unavailable to them, and at more affordable rates because the cost is based on their buyer’s credit rating. Supply chain finance will be crucial to helping these companies restart their activities as economies reopen after the pandemic, van der Hooft said, expecting an “immense need” for the product in the coming year.
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an article by Sanne Wass at S&P Global Market Intelligence