Boston, May 19, 2016 – Reverse factoring and dynamic discounting, both common supply chain finance products, secure funding repayments with large anchor buyers’ approved invoices. This principle of SCF would lead one to believe that almost all existing SCF programs are running with strong credit-rated buyers. But a significant portion of these programs are anchored around subinvestment-grade companies, and as the global SCF market morphs into more articulated schemes with various models, banks fear losing control of the SCF marketplace.
This report, based on interviews with major banks, SCF platform providers, and corporate representatives, summarizes banks’ issues and concerns regarding their SCF programs. It also suggests a methodology for collecting and analyzing reverse-factoring data, and proposes a way of quantifying the potential size of the reverse factoring financeable market.
This 24-page Impact Report contains seven figures. Clients of Aite Group’s Wholesale Banking & Payments service can download this report.