Corporate reports reveal extensive reliance on supply chain financing

Leases & LoansMoney Matters
Written By Jennifer Joslyn

💰 Corporate reports reveal extensive reliance on supply chain financing.

U.S. corporate bankruptcies are on the rise in 2023, reaching their highest level since 2010. This is accompanied by declining S&P 500 earnings and tightening financial conditions, including higher interest rates and stricter lending standards. The use of supply chain financing (SCF) by companies, which functions as a form of short-term borrowing, has come to light, with about $80 billion of SCF obligations identified among S&P 500 companies in Q1 filings. However, the true amount of SCF outstanding is likely higher, indicating potential liquidity risks and increased corporate debt levels.

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