As more companies adopt supply chain finance (SCF) programs, andeven look to such programs to bolster the bottom line, concerns aregrowing that third-party arrangements could trigger accountingproblems.

In some SCF programs, an intermediary pays a “marketing fee” tothe company for information about its payables and then approachesthe company's suppliers to offer them early payment in return for adiscount.

“As a matter of course, we can offer solutions like this, but westrongly caution our clients to seek clear guidance and approvalfrom their auditors,” says Rick Striano, Americas product head fortrade and financial supply chain for the global transaction bankingunit of Deutsche Bank.