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Supply Chain Finance and its Accounting Treatment
In the modern Supply Chain Finance landscape, Reverse Factoring is one of the most consolidated business model for working capital financing. However, accounting treatment of Reverse Factoring might affect the balance sheet of large corporate, with disruptive consequences for the programme as a whole.
Working Capital Index – Spring 2017
The Lloyds Bank Working Capital Index is a single-figure measure of the momentum change in operational working capital. It is based on data from Markit’s Purchasing Managers’ Index (PMI) surveys, which contain valuable information about pressures on British private sector companies’ current assets and current liabilities from month to month. This provides an opportunity to track working capital trends over time at the macro level The key finding of the first ever Working Capital Index is that British businesses are under significant pressure to increase their working capital. Yet every pound tied up in working capital is a pound that could be invested in other, more productive areas of the business.
Presentations SCF Forum 2016
Abstract: The 4th annual Supply Chain Finance Forum was a great success. In this document you will find the presentations for which the authors gave permission to share. The 2016 speaker line up brought together the leading experts in supply chain finance from both the corporate and the vendor worlds.
Supply chain for long-term sustainable growth
How corporate treasurers can use Financial Supply Chain programmes to enhance supply chain health while optimising working capital
Supply Chain Finance: gaining control in the face of uncertainty
Supply Chain Finance (SCF) is a topic that sits at the heart of the enterprise, with implications extending beyond finance out to every functional area. It is intimately tied to credit decisions, payments, and collection policies, and is impacted by decisions in finance, procurement, sales, supply chain, and more.
Trade credit versus bank credit: Evidence from corporate inventory financing
In this study, I introduce capital market imperfections into a structure framework of inventory investments and investigate impacts of trade credit on firms’ inventory dynamics and analyze the relationship between trade credit and bank loans.
Study on Features of Logistics Finance of Supply Chain System and Pledge/Factoring Model
Logistics finance of supply chain system has the openness feature with nonlinear and complexity. The financing effect of supply chain system’s logistics/commercial banks can enhance its effectiveness and gain the appreciation of capital flow and the maximization of system’s financing amount.
Purchase Order Finance Solutions for Companies in Restrucuturing or Turn Around Situations
The article presents purchase order finance solutions for strengthening companies in a restructuring or turnaround situation in the U.S.
Optimal Stackelberg Strategies for Supply Chain Financing with Credit Limits
In this paper, we research the optimal strategies for supply chain financing system with a capital-constrained retailer under the demand uncertainties. We design a supply chain financing system composed of a manufacturer, a retailer and a commercial bank and formulate a Stackelberg games model in which the manufacturer acts as the leader.
Optimal bi-level Stackelberg strategies for supply chain financing with both capital-constrained buyers and sellers
In this paper, we design a supply chain finance system with a manufacturer, a retailer and a commercial bank where both the retailer and manufacturer are capital constrained under demand uncertainties. We formulate a bi-level Stackelberg game for the supply chain finance system. We compare our model with two benchmark cases, to find out the important interactions between the operational and financial decisions in the supply chain finance system. It concluded that the different interest rates and credit lines would affect the supply chain operations.
Integrating financial and physical supply chains: The role of banks in enabling supply chain integration
Purpose: The financial supply chain, running parallel to the flow of goods and information, is common to all economic supply networks, and its integration with the physical supply chain is therefore a critical and ubiquitous aspect of supply chain integration (SCI) largely ignored in the literature.
Improving the Availability of Trade Finance during Financial Crises
An analysis of the implications of recent financial crises affecting emerging economies in the 1990’s points to the failure by private markets and other relevant institutions to meet the demand for cross-border and domestic short-term trade-finance in such periods, thereby affecting, in some countries and for certain periods, imports and exports to a point of stoppage.
Future-Flow Securitization Rating Methodology
In a future-flow securitization, a company issues a debt instrument whose repayment of principal and interest to investors is secured by payments on future receivables the company expects to generate through its normal course of operation. The typical future-flow originator of the receivables has been an operationally strong company domiciled in an emerging market country.
Financing the Newsvendor: Supplier vs. Bank, and the Structure of Optimal Trade Credit Contracts
We consider a supply chain with a retailer and a supplier: A newsvendor-like retailer has a single opportunity to order a product from a supplier to satisfy future uncertain demand. Both the retailer and supplier are capital constrained and in need of short-term financing. In the presence of bankruptcy risks for both the retailer and supplier, we model their strategic interaction as a Stackelberg game with the supplier as the leader.
Designing the Optimal Strategies for Supply Chain Financing Under Warehouse Receipt Pledging with Credit Line
The optimal strategy of financing through warehouse receipt pledging for retailers with capital constraints in the supply chain financing system under demand uncertainties is designed and investigated. We design a supply chain financing system composed of the manufacturer, the retailer and the commercial bank, in which the credit line and bankruptcy probability of the retailer are considered.
Commodity Trade Finance
Commodity trade finance is a financingmethod for commodity producers and commodity traders (e.g. crude oil, natural gas, steamand coking coal, steel and steel products, non-ferrousmetals, cotton, chemical substances, fertilisers, paper, etc.).
Analyzing Innovative Model of the Small and Medium Enterprise Financing: Supply Chain Financing
The Small and Medium Enterprises (SMEs) in the national economy play an irreplaceable role in solving the employment and achieving social stability. The credit is discriminative and the financing is difficult.
A Theory of Domestic and International Trade Finance
This paper provides a theory model of trade finance to explain the “great trade collapse” The model shows that, first, the riskiness of international transactions rises relative to domestic transactions during economic downturns, and second, the exclusive use of a letter of credit in international transactions exacerbates a collapse in trade during a financial crisis.
A Partial Credit Guarantee Contract in a Capital-Constrained Supply Chain: Financing Equilibrium and Coordinating Strategy
In this study, we first design a supply chain finance (SCF) system comprising a capital-constrained retailer, a manufacturer, and a commercial bank, and formulate a bi level Stackelberg game model in which the bank acts as a leader.
Financing the End-to-end Supply Chain
This book provides a detailed introduction to the emerging field of supply chain finance; demonstrating the importance of the strategic relationship between supply chain and financial communities within an organization.