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.