Supply chain finance got a big boost in the wake of the financial crisis, as companies worried about their suppliers' stability saw extending financing as a way to help them. But even as the markets and the economy have slowly mended, companies' use of supply chain finance has continued to grow.
Paul Johnson, senior product manager of global trade and supply chain solutions at Bank of America Merrill Lynch, said that while the bank has been offering a supply chain finance solution for about 15 years, "it was really the financial crisis in 2008 to 2009 that started to drive adoption." Big buyers served as "triage units" during the crisis, he said, by providing support for suppliers that were experiencing a liquidity squeeze.
"There was a sharp uptake in that 2008-09 time frame, and we've seen nothing but growth since," Johnson said.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
