Is reverse factoring hiding high risks?

Saturday 21 September 2019

Some of you may have read the article from Moody’s “Reverse factoring’s rising popularity comes with high, but hidden, risks”. https://www.moodys.com/research/moodys-reverse-factoring-rising-popularity-comes-with-high-but-hidden--PBC_1195322, The article touches on some important topics that they have expressed concerns in the past, after the Abengoa and Carillion bankruptcies. There is obviously cause for concern. As you know, we launched FCIreverse earlier this year, and are also concerned for our members engaged in this business, regarding the future implications of their positions relating to reverse factoring. As such, FCI would like to hear your thoughts on the subject. FCI launched a study in June 2018 by KPMG on reverse factoring and the accounting treatment issues as it applies to the various parties in the transaction. In addition, Dick Korf, a KPMG senior partner specializing in IFRS9, and author of this report will give a lecture on the implications of IFRS9 on reverse factoring during the upcoming FCIreverse Forum in Madrid on 17-18 October. Your presence at the forum will allow you to understand the implications and risks .

More information on the forum: https://fci.nl/en/event/FCIreverse%20Forum%20Madrid%202019/5959