The large, multinational businesses that drive the global economy have rarely been under so much pressure to demonstrate that the good they do for society matches the returns they generate for shareholders.
Working practices and financial management are under intense scrutiny from politicians and regulators, with much of the attention focused on how they treat suppliers.
Millions of designers and manufacturers that make the vital components inside the latest smartphones, cars and household appliances have traditionally been squeezed by the huge global brands they serve, often waiting nervously for months to be paid.
In order to pay wages and keep the lights on, they have been forced to resort to expensive short-term financing solutions, such as factoring, credit cards or high-cost short-term loans. Each of these provides money up front to cover everyday expenses, but come at a price few small businesses can bear.
For larger suppliers, often multi-billion-dollar companies in their own right, there is traditional supply chain finance provided by big banks. Whilst welcome to all who are able to participate, this brand of finance is usually the preserve of those top few large suppliers to a bank’s biggest customers. So once again, the small and medium enterprises (SMEs) vital to all supply chains and indeed all economies, are left out in the cold.
Greensill estimates that up to 75% of the cost of goods sold was previously unaddressed by existing short-term financing arrangements as they are cumbersome to administer, inflexible to changing circumstances and expensive.
This is why Greensill developed an entirely new model of Working Capital Finance that aims to make exclusive solutions once only used by multinationals available right across the supply chain at the lowest possible cost.
Time to Pay
Read how Greensill is addressing the biggest issue for small suppliers.