Keep Supply Chain Finance Off the Balance Sheet
November 16, 2017
Improving cash flow is a constant challenge, and it is difficult to find an approach that doesn’t negatively impact a company’s financials. Unlike borrowing or factoring, supply chain finance transactions occur off-balance sheet. This makes them less susceptible to leverage ratio compliance concerns, and result in an improvement to these ratios. So, how do supply chain finance transactions avoid being classified as bank debt? It comes down to the structure of the program.
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