Trade Financing Matters - Research Download
Why Walmart or P&G Donâ€™t Have a $10bn Supply Chain Finance ProgramDavid Gustin, Trade Financing Matters
Large global corporations like NestlĂ©, Unilever, and Proctor & Gamble spend billions on ingredients, commodities, chemicals, and indirect services. Their payment terms create receivables on their suppliersâ€™ balance sheets. These three companies alone spend $150 billion plus (P&G spends $50bn, Unilever $35bn, NestlĂ© $70bn). So why donâ€™t these companies have huge supply chain finance programs to pay their suppliers with cheap Libor-based money? This paper addresses the challenges with setting up a supply chain finance program, the myriad of legal agreements required, and onboarding.