August 18, 2018

Saturday Off-Topic (Moderated) Open Thread (081818)

Filed under: Lucid Links — Tom @ 6:00 am

This open thread is meant for commenters to post on items either briefly noted below (if any) or otherwise not covered at this blog. Rules are here.



  1. Davos Globalism Is Dead – POPULIST ECONOMICS for Small and Medium Enterprises Is the Replacement

    Tied to that is what is called, Purchase Order Financing. That is a new and novel way of getting funding to these suppliers when they most need it. It has the potential to attract and boost smaller suppliers, enabling them to handle bigger contracts more reliably, creating a more resilient supply chain, lowering input costs, while helping contractors to deliver on time and on budget.

    What exactly is SME capital? Is it possibly the very core of an emergent populist economics? It is a completely new way of financing small and medium sized businesses that are supplying into large supply chains, based on the buyer’s creditworthiness but without any advanced payment by the buyer or impact on buyer’s balance sheet. 
And it can be insured for risks.

    Cash is advanced to suppliers at the point when it’s most needed – when the purchase order is issued – up to 50% of the value of the purchase order.

    This process involves the buyer as a critical participant, but at zero cost to the buyer and with no impact on buyer’s balance sheet. The supplier pays a finance charge with no need for security or any director’s guarantee.

    For the supplier this amounts to unsecured borrowing, available earlier and more flexibly than other forms of funding. It is cheaper than invoice-based finance and certainly than debt on the balance sheet.

    Comment by dscott — August 18, 2018 @ 9:23 am

  2. Quite a contrast with the Big Cos which have their vendors on 90-day and 120-day terms.

    Comment by Tom — August 18, 2018 @ 9:54 am

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.