Let’s discuss Blackstone’s new acquisition in 2020. Global Supply Chain Finance Ltd. (GSCF) is a Swiss company specialized in servicing Supply Chain Finance (SCF) programs with the use of a highly advanced processing platform. GSCF is headquartered in Zug, Switzerland.
Alternative Distribution Financing Ltd. (ADF)-its financing arm is the subsidiary company focused on financing & providing a single-source solution for companies seeking all-inclusive Supply Chain Financing services
- 29 years old company
- Global coverage
- Highly specialized service provider
- Tool like GIS (GSCF Information System) & FAST (Financial Analysis and Spreading tool) – gives statistics relating to partners’ financial performance & trends for volumes, payment behavior
AR Financing programs involve an originating Company (Vendor) and its Partners (Buyers). These programs can be financed by a third-party Funder and might include Credit Insurance coverage.
It includes below 3 types of financings
- Distribution Financing
- Receivables Servicing
Funder pays the Supplier on behalf of the Company earlier whereas the Company gets the extended payment terms & pays the Funder total invoice amount plus a program fee at the agreed maturity date.
Types of Services
|Distribution Financing||Factoring||Receivables Servicing|
|Parties involved||Company, Funder, Partners, GSCF||Company, Funder, Selected Partners, GSCF||Company, Partners & GSCF|
|Nature of transactions||The company sells receivables to the funder & collects them earlier, partners in return gets extended payment terms, paying the funder upon maturity date||The company sells the receivables related to a portfolio of selective Partners to a Funder, which accelerates the collection to the company at a discount. Partners may or may not be aware of this arrangement||GSCF owns the end to end administration of trade receivables of a Company, including invoices, reconciliation of partner payments, dilution tracking, credit analysis, rating, and monitoring of partners performance|
|Suitable for||Companies with high-volume sales, looking to grow sales while maximizing liquidity||Companies with high-volume sales with a portfolio of credit-worthy partners, seeking attractive short-term financing and an enhanced Balance Sheet.||Companies with sizeable open-account trade receivables looking to streamline credit and collections tasks and enhance risk management.|
|Agreements signed||Company and funder execute a Receivables Purchase Agreement (RPA) and the partners sign a Payment Agreement||Company and funder execute a Receivables Purchase Agreement (RPA)||Agreement between the Company & GSCF for outsourcing all credit and collections tasks|
Thus Blackstone’s new acquisition in 2020 will go a long way in increasing its resources and earning potential.
Let us know your thoughts?
This acquisition of Blackstone will help in expanding its factoring business by leveraging the GSCF platform used and will help the working capital solutions program to grow globally.
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