Following a study into the supply chain finance market led by the ACT it is clear that companies with good credit standing can play a significant role in improving their supply chain’s liquidity by facilitating buyer-driven receivables programmes that their suppliers can participate in. As Stuart Siddall, ACT chief executive points out, it is equally clear that supply chain finance would benefit from a co-ordinated industry focus on increased transparency and standardisation.
At the moment the UK supply chain finance market is highly fragmented and that is one of the reasons that it has been undervalued as a source for companies that cannot access the public debt markets. The promise is that investors with substantial capital may well be keen to enter a market provided that the right structure and investment vehicle can be developed.
The Treasurer and Cash Management Supplement have been exploring supply chain finance for some time. In this issue we look at how, as the market appetite for credit remains in short supply, companies can find solutions to merge their cash and trade infrastructures. Treasurers in companies at the top of the supply chain have a key role in understanding and explaining how supply chain finance can be a win-win for all involved.
Peter Williams
Editor