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.

Since decades, the financial industry has experienced a continuous evolu- tion in service delivery due to digitalization. This evolution is characterized by expanded connectivity and enhanced speed of information processing both at the customer interface and in back-office processes.

In April 2013, Procter & Gamble (P&G), the world’s largest consumer packaged goods (CPG) company, announced that it would extend its payment terms to suppliers by 30 days. At the same time, P&G announced a new supply chain financing (SCF) program giving suppliers the ability to receive discounted payments for their P&G receivables.

This Report is based on a joined research by PWC and Supply Chain Finance Community to provide insight in the current adoption of Supply Chain Finance, it’s main drivers and perceived succcess/bottlenecks.

How corporate treasurers can use Financial Supply Chain programmes to enhance supply chain health while optimising working capital

In this chapter we discuss the main impediments to the adoption of reverse factoring (RF) by suppliers in the logistics services business. Although the usage of RF is ascending, empirical evidence on RF and its implementation, especially from the point of view of suppliers, is scarce.

The 2014 E-invoicing, Supply Chain Finance & E-billing Market Guide focuses on the global e-invoicing ecosystem with its continuously evolving role in the increasingly interconnected business processes.

Factoring is explicitly linked to the value of a supplier’s accounts receivable and receivables are sold, rather than collateralized, and factored receivables are not part of the estate of a bankrupt firm.

As a result of increased globalization, enhanced competition and rising customer expectations, to -day’s businesses face more complexity and uncertainty than ever before.

As intermediaries of capital and related services expand their of- ferings, Supply Chain Finance (SCF) has enjoyed considerable attention from industry.

Bank lending is the most common source of external finance for m any SMEs and entrepreneurs, which are often heavily reliant on traditional debt to fulfill their start-up, cash flow and investment needs.

Purpose — The purpose of this paper is to show that market dynamics can significantly influence the lifecycle and value of a supply chain finance (SCF) arrangement.

“Supply Chain Risk Management is an issue that many companies face and yet few companies know how to deal with it in a systematic and pragmatic manner. While avoiding and reducing supply chain risks are certainly preferable, developing ways to restore and stabilize supply chain operations rapidly after a major disruption is critical for managing global supply chains”.