Not being paid on time is a problem many suppliers face all over the world. \u00a0To negate this issue, a cluster of new fintech firms have begun making a charge to change how supply chains are financed. \u00a0Greensill Capital, a fintech company founded out of Australia, uses an approach to take advantage of buyers’ low credit risk\u00a0by raising funds in the capital markets and paying their clients’ suppliers on an agreed date. \u00a0The lender will then wait to\u00a0collect the full value of the invoice\u00a0from the buyer at a later date. \u00a0Currently, with low interest rates, and the period of finance being so short, the discount that Greensill takes is barely noticed by their customers, but it improves the cashflow for suppliers without shortening payment times for buyers–a win for both parties.<\/p>\n
I believe this strategy for fintech firms could\u00a0lead to a lot of success, but I don’t see there being room for as many firms as there are right now. \u00a0I think eventually the market will reduce into just two or three large short-term lending firms to help the cashflow problem for suppliers.<\/p>\n
<\/p>\n
http:\/\/www.economist.com\/news\/finance-and-economics\/21714377-factoring-invoices-has-become-cheaper-and-faster-hard-pressed-suppliers-how<\/p>\n","protected":false},"excerpt":{"rendered":"
Not being paid on time is a problem many suppliers face all over the world. \u00a0To negate this issue, a cluster of new fintech firms have begun making a charge to change how supply chains are financed. \u00a0Greensill Capital, a fintech company founded out of Australia, uses an approach to take advantage of buyers’ low … Continue reading Fintech Firms Revolutionize Supply-Chain Finance<\/span><\/a><\/p>\n","protected":false},"author":1809,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","kk_blocks_editor_width":"","_kiokenblocks_attr":"","_kiokenblocks_dimensions":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-305","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"gutentor_comment":0,"qubely_featured_image_url":null,"qubely_author":{"display_name":"masonwoodsk","author_link":"https:\/\/blogs.scu.edu\/finis\/author\/masonwoodsk\/"},"qubely_comment":0,"qubely_category":"Uncategorized<\/a>","qubely_excerpt":"Not being paid on time is a problem many suppliers face all over the world. \u00a0To negate this issue, a cluster of new fintech firms have begun making a charge to change how supply chains are financed. \u00a0Greensill Capital, a fintech company founded out of Australia, uses an approach to take advantage of buyers’ low…","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/users\/1809"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/comments?post=305"}],"version-history":[{"count":2,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/305\/revisions"}],"predecessor-version":[{"id":375,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/305\/revisions\/375"}],"wp:attachment":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/media?parent=305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/categories?post=305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/tags?post=305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}