March 2021
The recent coverage of "Greensill" is creating waves and leading to queries from some players participating in or interested in supply chain finance programs via platforms.
This is a good opportunity for us, as a leading marketplace provider of working capital finance (factoring, reverse factoring and dynamic discounting), to reiterate what we have always considered to be the factors for the successful implementation of supply chain finance: full transparency, high liquidity and an open, professionally managed marketplace.
The top priority for a successful long-term supply chain finance program is 100% transparency, both for companies and their suppliers as well as financing partners. Credit risks are neither mixed nor enhanced by structuring elements. That’s why we call it "pure finance" – everyone knows who and what risks they are dealing with. Financing terms are not set unilaterally, but are determined by supply and demand. The best offer is awarded the contract, and smaller suppliers are not discriminated against in this process.
Competitive, transparent working capital financing requires a large pool of financing partners (banks, asset managers and others). An independent platform offers all players fair conditions and the best possible risk diversification. Existing business relationships are intensified and new partnerships are established. The free choice and diversity of financing partners eliminates dependency on single funders and secures financing security.
To ensure fair and competitive working capital financing, it requires more than a platform that provides the technical infrastructure and brings both parties, companies and financing partners, together. It needs objectivity in the interest of all marketplace participants without influence on programs, pricing and own interests as lenders. The same way it is with a stock exchange.
CRX Markets AG has taken these factors into account since its founding in 2012. In the meantime, more than 35 financing partners are active on our global marketplace, reliably supplying their existing customers or new customers with liquidity.
The transparent and open marketplace approach of CRX Markets is once again confirmed, especially in view of the current market news. Maximum transparency and liquidity on a BaFin-regulated marketplace are the most important factors for a sustainably successful implementation of working-capital-financing and especially supply chain finance programs.
Are you interested in talking to us? Please get in contact with us.