by Sebastian Hölker, Head of Structuring and Implementation of Supply Chain Finance Products, Global Transaction Banking, Corporate & Investment Banking, UniCredit
For a long time, corporates have had difficulties financing their entire receivables portfolios, at least when they didn’t fit into large-scale securitisation programmes. Collaboration between banks and existing factor-insurer partnerships promises to finally put an end to this problem, says Sebastian Hölker, Head of Structuring and Implementation of Supply Chain Finance Products at UniCredit.
Many corporates – for many years – have found that neither banks nor factoring providers are prepared to fully take on their receivables portfolios. Both tended to ‘cherry-pick’ according to their respective preferences – often leaving the customer with certain debtors excluded from the supply chain finance activities.
But why, one might ask, is it important to corporates that their complete receivables portfolios are financed, given the current abundance of liquidity in the market?
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