Vendors now have more opportunities for supply chain financing
The corporate supply chain finance market grew globally to a whopping $1.8 trillion in 2021 - a 38% increase from 2020. This supply chain finance growth may be a result of skyrocketing interest rates, as the factoring programs available in the market can provide suppliers with a cheap source of cash up-front.
The growth also may signal a widening chasm of financial stress upon supply chain companies, who are less-able to finance their own operations without assistance from outside sources.
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A California-based freight forwarder, Boateng Logistics, has filed for bankruptcy liquidation, leaving trucking, logistics, and factoring companies owed millions.