The country that gave the world Lex Greensill is taking a close look at supply chain finance (SCF).
Australian lawmakers last week held hearings in a parliamentary inquiry into how SCF affects small businesses and whether providers need to be more tightly regulated.
The inquiry was spurred by the collapse of Greensill, the UK-headquartered SCF firm, in March this year. But it also follows a scathing assessment last year by a small business watchdog which described how large buyers were forcing suppliers to choose between using an SCF provider – which takes a small slice of the amount due – or face lengthy waits for payment.
Lawmakers on the parliamentary committee on corporations and financial services heard from two SCF providers, Octet and Fifo Capital, and the Council of Small Business Organisations Australia, during the July 28 hearing.
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