Use of “Hidden Debt Loophole” Spreads Among Australian Corporations | WHAT REALLY HAPPENED

Use of “Hidden Debt Loophole” Spreads Among Australian Corporations

Contractors in Aus are waiting 3 months to get paid unless they take a cut.

Reverse factoring, by contrast, is a much more pernicious form of supply chain financing that is being used by large companies to effectively transform their supply chain into a bank. Put simply, if suppliers want to get paid in a reasonable period of time, they must pay an intermediary for the privilege. But importantly, in most countries there is no explicit accounting requirement to disclose reverse factoring transactions.

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