Global Supply chain finance’s (SCF’s) original value proposition is to facilitate access to finance by arbitraging an “anchor” buyer’s lower funding costs on selected suppliers’ behalf. This principle of SCF would lead one to believe that almost all existing SCF programs are running with strong credit-rated buyers. In this report, Aite Group uncovers that, contrary to general expectation, a significant portion of current SCF programs are anchored around sub-investment grade companies.
Most frequently used SCF models’ origination platforms attract companies that want to sell their receivables and match these with the funding eligibility criteria established by funding providers.
