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| Additionally, the accounting standards have been updated to provide more transparency for off-balance sheet transactions and to ensure that these transactions are not used to deliberately mislead the investors. | | Additionally, the accounting standards have been updated to provide more transparency for off-balance sheet transactions and to ensure that these transactions are not used to deliberately mislead the investors. |
| ===How does a supply chain finance platform works and what is the main benefit of the platform?===
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| The main role of technology providers, generally known as FinTechs (financial technology firms), is to provide an online transaction platform (i.e. an SCF platform) to facilitate the exchange of information between buyers, suppliers and external funders.
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| Banks may own the platform or utilise a third-party platform provider. The potential benefit of using a third-party platform provider is that corporate customers can choose between using their own funds, or single or multiple external funders.
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| Using a longitudinal case study of a focal firm, Motorola, Blackman et al. (2013) explore the concept of financial supply chain (FSC) and find that sharing financial data with suppliers helps generate cost savings for both parties and improves the payment process as well as reducing risk. Two studies emphasize collaboration and the network features of SCF.
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| Regarding reasons to adopt SCF, the primary objective is to extend payment terms or Days Payable Outstanding (DPO) (Van der Vliet et al., 2015; Liebl et al., 2016). Some firms aim to reduce risk in supply chains (Caniato et al., 2016; Liebl et al., 2016) while only a few adopt SCF for the purpose of process simplification (Liebl et al., 2016).
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| === Other ===
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| Accountants will often require a legal opinion confirming that a true sale of the receivables has been achieved from a legal perspective before a transaction can be classified as off-balance sheet.<ref>https://www.simmons-simmons.com/en/publications/ck0alkdv2neex0b85znrdvrue/19-true-sale-of-receivables</ref>
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| <nowiki>https://www.huntonak.com/en/insights/true-sale-or-not-true-sale-that-is-the-question.html</nowiki>
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| In consequence, as one commentary put it, "defining true sale is the holy grail of the securitization market."
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| SABB launches new sharia-compliant inventory financing solution: https://www.gtreview.com/news/mena/sabb-launches-new-sharia-compliant-inventory-financing-solution/
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| SABB rolls out new sharia-compliant SCF product: <nowiki>https://www.gtreview.com/news/mena/sabb-rolls-out-new-sharia-compliant-scf-product/</nowiki>
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| <nowiki>https://thepaypers.com/e-invoicing-supply-chain-finance/liquidx-completes-first-sharia-transaction--775316</nowiki>
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| https://www.liquidx.com/
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| https://pitchbook.com/profiles/company/42924-88#timeline
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| https://www.tradeteq.com/
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| == References and notes == | | == References and notes == |
| <references /> | | <references /> |