Update on SCF Markets and practices
Recent high-profile exposure of Supply Chain Finance means that it has never been more appropriate to take a look at the state of development of this important method of financing.
Join Steven van der Hooft, Eva Degenhart, Tony Brown and John Brehcist as they take a temperature check, discuss the latest situation, current evolution and look to the future.
Focusing on the relationship aspects of SCF they will consider issues including:
• Likely repercussions in the space of centralised industry regulation and control
• How to address the fact that all forms of SCF (even seller centric receivables finance products) are put in the press in the same basket
• The imperative to go back to basics: receivables finance is about financing the real economy directly, not about arcane financial engineering
• Technology and AI are great tools to add/reinforce risk mitigation but cannot replace all of common sense and human analysis
• The role of secondary security (like insurance) blinding investors to the need for underlying asset security
• The concentration problem: Payables Finance deals when not on AAA investment grade buyers, carry an intrinsic risk of “blowing up” when the buyer fails, or credit insurance is withdrawn. This concentration risk on one buyer is something that old-fashioned receivables financiers have always avoided for good reason...
As ever, this will be an interactive debate and we are sure will create a lively discussion.