Economics · Supply Chain Financing
In a supply chain financing arrangement, 'Reverse Factoring' structures are typically built around the creditworthiness of the anchor buyer, the assignment of approved invoices, and digital discounting platforms. The fundamental rationale of such a structure is to:
- 1substitute for the physical quality inspection of goods at the delivery point
- 2exempt the anchor buyer from filing mandatory annual financial statements
- 3artificially inflate the market valuation of the supplier's fixed assets
- 4provide lower-cost early financing to suppliers based on the buyer's strong credit profile✓
Correct answer
provide lower-cost early financing to suppliers based on the buyer's strong credit profile
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