Payables Finance Guide 2021 (3rd edition)

Deutsche Bank, flow
October 2021

Geoffrey Wynne was quoted in "Payables Finance: A Guide to Working Capital Optimisation and Supply Chain Risk Management" (3rd edition), published by Deutsche Bank's flow magazine, which updates the 2019 edition of the guide and examines major developments in payables finance, such as in relation to financial reporting and sustainability, and includes a number of new case studies.

Addressing the legal issues of trade payable status (Section 4.2.1), Geoff says: "The reclassification of trade payables as debt on the balance sheet matters. It can have serious implications for corporate buyers' loan covenants."

He continues in relation to true sale and assignment (Section 4.3): "If a German supplier is selling to a French buyer — and I am a UK SCF provider — theoretically every time I buy a trade receivable, I must make sure it was validly sold to me under German law, French law and English law."

Click here to view a PDF of the Guide. 

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