tag:blogger.com,1999:blog-3929032603371682445.post349241352132904780..comments2023-10-25T15:38:48.877+05:30Comments on Finance and Capital Markets: Supply Chain Finance-a new version of off balance sheet liabilities?Anandh Sundarhttp://www.blogger.com/profile/14874226278638311812noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3929032603371682445.post-43420963030941423232012-02-14T22:07:10.432+05:302012-02-14T22:07:10.432+05:30What “dues” of which “counterparties” is the large...What “dues” of which “counterparties” is the large global player guaranteeing? <br /><br />Supply Chain Finance involves a buyer, their suppliers, a technology and services provider and a funder (e.g. a bank). It helps organizations optimize cash flows within their supply chains. The buyer (the “large global player”) does not guarantee the “dues of its counterparties” (i.e. suppliers). At most, the buyer is confirming or guaranteeing its own pre-existing obligation to pay its suppliers. This may make it easier for suppliers to sell those obligations to banks but they are still the buyer’s obligations. There may be a question of reclassification of the buyer’s obligation from the original trade payable to bank “payables” (i.e. bank debt) depending on the nature of the guarantee and whether or not the guarantee is provided to a bank, but the buyer is not taking on the obligations of its suppliers or anyone else. <br /><br />Robert Kramer<br />Vice President, Working Capital Solutions<br />PrimeRevenue, Inc.Robert Kramerhttps://www.blogger.com/profile/09734693413779710634noreply@blogger.com