25 years: Wealth and risk management specialist
In the first of this two-part series on the collapse of Greensill Capital, Faisal Sheikh outlines the main service they provided; supply chain financing, as well as discussing who the main players involved in the collapse were.
In the first of this two-part series on the collapse of Greensill Capital, Faisal Sheikh outlines the main service they provided; supply chain financing, as well as discussing who the main players involved in the collapse were.
9 mins 30 secs
Greensill Capital entered administration in March 2021 owing an estimated £2.7bn to creditors, threatening 50,000 jobs worldwide. Greensill Capital provides supply chain financing to firms that traditionally had a delay between shipping goods and receiving payment. Greensill would pay the suppliers and then the customers would settle with Greensill at a later date. Greensill packaged the invoices into securities that they would then sell to investors, using the proceeds to pay suppliers.
Key learning objectives:
Understand supply chain financing (factoring), the service Greensill Capital provided
Outline the main players involved in the collapse of Greensill Capital
Outline the concerns had been raised about Greensill Capital