Webinar Recording: Supply Chain Finance Programs: a COVID-19 Working Capital Solution?

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The economic impact of COVID-19 is placing tremendous strains on supply chains, with corporates of all sizes struggling to maintain production and manage liquidity and working capital. Supply chain finance programs can play an important role in supporting and preserving supply chains and managing risk.

As buyers and suppliers focus on maintaining liquidity, supply chain finance programs are an exceptionally important tool. Their efficiency and size suggests that they should be a key consideration for any economic rescue program, perhaps even providing a direct means of delivering CARES Act financial aid.

In this webinar, Paul F. Kruger, Seyfarth partner and chair of the firm’s Structured Finance practice, provides an overview of the pre- and post-COVID-19 operation of supply chain finance programs, and the issues that buyers and suppliers should be aware of.

Topics covered include:

• A look at pre-COVID-19 and post-COVID-19 issues around supply chain finance programs
• How does a typical supply chain finance program work?
• What are some examples of transactions that can be used in a supply chain finance program?
• A breakdown of the roles of the buyer and the supplier in the supply chain finance program
• What are key elements of the payment services agreement and the receivables purchase agreement?
• How will default rates be affected? Will 2008-2011 default rates be exceeded?
• Will supply chains pull back from their globalization trend? Will they regionalize or even localize?
• How are rating agencies, regulators, and investors changing the way that they view supply chain finance programs?
• How are these programs providing a ready-made vehicle for delivering CARES Act and other financial aid to the front lines of the economy?

 

This recording is eligible for CLE credit in CA, IL, NY, and NJ. Credit is pending in TX.  All other jurisdictions will be applied for as requested, but please note that not all states allow for distance learning so some states will be ineligible. To request CLE credit, fill out this form and return it to CLE@seyfarth.com.  If you have questions about jurisdictions, please email CLE@seyfarth.com. CLE credit for this recording expires on 4/20/2021.