How Lenovo set up a cross-border supplier finance programme
The Chinese technology company introduced a cross-border supplier finance programme to improve its own cash conversion cycle while mitigating any drawback for its key suppliers.
Extending payment terms is not a simple decision to take. Without careful planning it can hurt a company’s working capital to the benefit of the party on the other side of the negotiating table. However, when a large and complex supply chain is involved, the implications can be detrimental to all.
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