Reply To: what does supply chain insured mean exactly?

loopy #8034

AFAIK, there is no good explanation of that for investors. There is this:

A look into supply chain finance

My understanding of Supply Chain Finance is as follows. A supplier has an order from buyer, but needs to purchase materials to fulfill that order. In this case, Marketlend pays the invoices for the order materials directly (and does not remit funds directly to this suppler/borrower). When the order is completed and delivered, Marketlend receives the payment from the buyer and covers the capital and interest costs of the “loan” before remitting any extra to the supplier/borrower.

If the finance is insured, then if something goes wrong and the payment from the buyer is not recoverable, the insurance will kick in and compensate investors. Subject, of course, to the usual conditions on Marketlend’s insurance policy.

Please note I am a fellow investor and not associated with Marketlend, so this is not an official response to your question.

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