Cass Knowledge

Although supply chain finance appears to offer a win-win-win proposition for buyers, suppliers and banks, buyers have been reluctant to adopt these solutions. It has been suggested that accounting requirements on supply chain finance render its adoption unattractive for buyers through reclassification of accounts payable to debt, thus increasing the debt held by the buyer on their balance sheet.

To investigate whether this is indeed the case, preliminary research was carried out through interviews with four financial organisations.