Carlos Cordon: “The Greensill debacle comes at the worst time”

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As obscure as it is widespread. The financing technique used by Greensill, a British company which has just declared a resounding bankruptcy, was not invented by it. Called supply chain finance or “reverse factoring”, this method emerged twenty years ago, details Carlos Cordon, professor at IMD and specialist in supply chains. It involves asking an intermediary to pay a supplier’s invoice immediately, freeing up funds for him without forcing the payer to have to pay it before the due date. Explanations.

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