Explaining Supply Chain Finance and Greensill’s Woes

The concept that it often makes good business sense to delay paying suppliers, keeping cash free for other purposes, has been taken to new levels of complexity. A global industry has grown up of financial go-betweens who buy unpaid invoices at a discount. The firms give vendors cash sooner than if they’d waited for customers to pay — if they’re willing to accept less than what they’re owed. Supply chain financing, as it’s known, is heralded by its champions as a “win-win” for all sides, but cri

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