Supply Chain Finance check0 / 1 answered · 0 correct
Check 1
Can commercial disputes reduce the value of a receivable?
Receivables Finance
Finance an invoice/receivable without pretending every receivable is the same risk.
Receivable
A supplier has a receivable when a buyer owes money for goods/services already supplied under agreed terms.
Financing
A financier may advance money against or purchase that receivable, subject to eligibility, evidence and credit risk.
With or without recourse
Recourse determines whether the seller remains liable in specified non-payment situations. “Sold” does not always mean every risk has disappeared.
Dilution and disputes
Returns, credits, quality disputes and set-off can reduce what is actually collectible. Financiers therefore look beyond the invoice face value.
Standards / source note: Supply-chain-finance terminology is guided by the Global Supply Chain Finance Forum definitions, while the actual legal, credit and operational structure remains transaction-specific.
Remember thisAn invoice is a claim for payment, not automatically a bank-quality asset.
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