Accounts payable and accounts receivable financing service provider Global Supply Chain Finance (GSCF) is making moves to bring supply chain financing to more of the world. According to Wednesday (July 15) reports, the company has struck a partnership with credit insurance firm Euler Hermes World Agency to fuel connections to companies in need of this type of loan.
According to the companies, Euler Hermes will act as the primary insurer and introduce GSCF to businesses that meet the criteria for AP and AR financing.
“We believed that many of Euler Hermes’ clients would benefit from our financing solutions, and Euler Hermes also knew that via GSCF’s financing programs there would be additional opportunities to provide credit insurance cover to new names,” said GSCF CEO Kendall Stevens in a statement.
GSCF offers supply chain financing through its Alternative Distribution Financing fund, backed by an array of investors. With investor support, the company now said it is looking to actively seek out companies that are right for this type of financing instead of worrying about a liquidity gap.
According to Euler Hermes Director of Northern Europe Operations Marcel van den Akker, GSCF’s risk assessments make the partnership a no-brainer. “At Euler Hermes, we fully trust GSCF’s risk-sensitive processes and real-time monitoring of programs and greatly value the transparency provided through their impressive technology and automated altering system,” the director said.
Euler Hermes is no stranger to the business of AR. Each quarter the firm provides a Receivables at Risk Index to assess whether B2B payments are being settled on time — a report, the firm says, is an indication of overall economic health.
Late payments are an especially strong driver behind the need for supply chain financing as it allows suppliers to access working capital as they wait to get paid. According to recent findings from BCR Publishing, the supply chain finance market could be worth as much as $46.5 billion within the next year.
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