Supply Chain Finance is Gaining Ground as a Funding Tool, Large Corporates Say

Published 
  • More than one in four multinational corporations surveyed have a supply chain finance programme in place. One quarter are investigating, planning or implementing a programme
  • Most companies who already have a SCF programme are looking to extend it even further
  • Treasury is the driving force behind establishing and managing SCF programmes

London, UK – A recent survey by EuroFinance, the global specialists in treasury research and events, has revealed that 27% of the large companies polled have a supply chain finance programme in place. This is set to grow with a further 25% investigating, planning or implementing a programme.

According to the 245 respondents, the key drivers for a supply chain finance programme vary depending on the market. Extending payment terms (days’ payable outstanding or DPO) and improving working capital were cited as the most important drivers (34%), closely followed by better use of liquidity (31%).

80% said that treasury plays a key role in setting up and managing a supply chain finance programme.  Some 65% of the participants that had already a programme in place stated that treasury had taken the lead role in establishing the programme. 

Supply chain finance refers to a range of options for companies to ensure financing of products and goods – most typically using the credit of the largest company to get better terms for the smaller suppliers, or for using a range of technologies to improve payment terms. The survey was designed to understand the current position and future plans of companies supply chain finance programmes and the role played by treasury.

In the wake of regulatory changes that are affecting funding globally, many larger corporates are taking a more active role in ensuring there is access to funding along complex global supply chains. Some corporates are taking on more of the risk embedded in their supply chains to extend financing or to improve terms, liquidity and their working capital positions. It can be complex to convince suppliers to get onboard, and it isn’t for all, but it’s very much a case of ‘watch this space’,” says Katharine Morton, Editorial Director of EuroFinance.

Most recent episodes

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

00:00

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00

FX Connections: Bringing Transparency to Cross-Currency Payments

Cross-border activity is growing at a remarkable rate, making FX payments a hot topic for treasurers across the globe.  In this TreasuryCast episode, Eleanor Hill asks Daniela Eder and Gibran Maqsood (Barclays Corporate Banking) to provide their key action points around FX payments in 2022. Our guests...

21:00