Time to Pay: The Biggest Issue for Small Suppliers

6th February, 2020


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.


< Back to Insights

Visionary, Bold, Disruptive

Each month, Greensill’s team of experts contribute to the latest insights and analysis, setting the agenda and leading the discussion on unlocking capital so you can put it to work.

Whitepaper

27th July, 2020

Doctors Go Digital

A new digital partnership has developed solutions that enable the NHS to cover staff shortages more efficiently, provide on-demand pay for doctors working additional locum shifts and can potentially reduce the NHS annual agency bill for temporary staff.

Whitepaper

16th June, 2020

Fair Finance in Latin America

Greensill is rapidly scaling up to offer Latin American businesses a much-needed lifeline and fairer access to finance. Learn how a new Greensill partnership aims to unlock $750 billion of working capital across Latin America.

Whitepaper

22nd April, 2020

Drive to Survive: Funding the Automotive Future

Covid-19 and regulatory pressure present incredible challenges for the automotive industry, but investments in the future of transportation offer a path forward. Learn how Greensill is helping to fund the automotive future.

Whitepaper

6th March, 2020

Spotlight on Suppliers

Greensill founder and CEO Lex Greensill understands the difference a steady stream of reliable working capital can make to a small business. Hear from the businesses and people who rely on Greensill to make finance fairer for all.

Sign up to monthly insights in our Newsletter

Subscribe to the Greensill monthly newsletter to discover the latest in news, views and insights in the world of balance sheet optimisation, working capital and supply chain finance. Join the discussion today.