How Late Payments to Vendors Spawned a New Business

Bloomberg | Aug 16, 2019 at 4:00 AM
  • It often makes good business sense to delay paying suppliers, keeping cash free for other purposes. Now the concept is being taken to new levels of complexity. A global industry has grown up of financial go-betweens who buy unpaid invoices at a discount. The firms give vendors cash sooner than if they’d waited for customers to pay — if they’re willing to accept less than what they’re owed. Financiers say the practice, known as supply chain financing, is a “win-win” for all sides, but small busi