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Investors are benefiting from an old tension between companies and their suppliers, the time it takes to pay the bills. US pension funds, private equity firms and other investors invest capital in short-term financings dominated by historically large banks, known as commercial finance or factoring, helping to sharpen the wheel cross-border trade.
In recent years, a range of independent financing platforms have emerged around the world to provide cash advances to small businesses that provide goods to multinationals. With the funding of private investors and other sources, the platforms buy and receive customer invoices on time and realize a profit margin from the process. Cray Hill Capital Management, an asset management company in New York, whose investors are pension funds, insurance companies and sovereign wealth funds, said Carlos Mendes, co-founder of the 39; company.
Cray Hill helps finance a trade finance company called Sixt International, Inc., which buys business invoices in Asia and South America that provide clothing, electronics and other products. other products to US retailers and other multinationals.
Many large companies have payment agreements that allow them to take months to get the financial value of the bills.
The top 1,000 US public companies earned an average of 56.7 days to pay their bills last year, up from 53.3 in 2016, according to a study by consulting firm Hackett Group. …
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