The supply chain finance working group (SCFWG), set up at the request of the Bank of England and chaired by the ACT, has published its report on supply chain finance based on a market review from September 2009 to May 2010.
The SCFWG began its work at a time when bank lending to smaller companies was described by the Bank of England as constrained, and it asked the ACT to look if there were alternative ways of providing additional capital to this important part of the economy. One of the primary aims was to assess whether there is demand for an expansion of the supply chain finance market.
The SCFWG identified that supply chain finance structures have developed to suit a variety of needs and that no one structure should be singled out as the preferred option. However, in current market conditions where lenders are concerned with credit quality the SCFWG believes that buyer driven receivable programmes can and will help ease funding conditions.
Download the full report below, or view the press release
.