Global Supply Chain Finance Forum – August 2020

ITFA has been an active member of the Global Supply Chain Finance Forum (GSCFF) – comprising BAFT (Bankers’ Association for Finance and Trade), Factors Chain International (FCI), the International Chamber of Commerce (ICC) and the Euro Banking Association (EBA) – which has released a new paper in response to growing concerns regarding the use of supply chain finance (SCF) and, in particular, payables finance programmes. The report, ensuring payables finance remains a force for good, aims to address criticisms across three key areas: the potential adverse impact on suppliers, issues relating to financial reporting and transparency, and overall programme risk.
Key conclusions include:

The report follows extensive work from the GSCFF on promoting strong industry standards and agreed definitions, including the release of the Standard Definitions for Techniques of Supply Chain Finance and Payables finance – how it helps global supply chains. In addition, the GSCFF has been working on a series of additional guidance documents for the techniques included in the Standard Definitions. The first report, on receivables discounting, was published in June 2019, with the next on payables finance due this year.
To read the full report, please click here.

Copy link
Powered by Social Snap