‘Chains’ go with ‘incentive’: new trends in

supply chain asset-based lending solutions

Session Co-Chairs Speakers

• Gregorio Consoli • Margaret Boswell
• Giuseppe Schiavello • Martin Ebner
• Andrea Feliciani
• Arianna Volpato
Co-Chairs

• Giuseppe Schiavello • Gregorio Consoli

Panelists
Margaret Boswell
Margaret Boswell has been a partner in the Banking & Finance/Project
Finance practice group of Gide's London office since 2004. She has
substantial experience in international finance, including general banking law
and capital markets, as well as structured finance generally and
securitisation in particular. She has specific expertise in project-based
finance having worked on many cross-border transactions including multi-
jurisdictional secured financings for corporations and development banks,
especially in emerging market jurisdictions.
Martin Ebner
Martin Ebner is a partner at Schoenherr in Vienna and member of the firm's
banking, finance and capital markets practice group. Martin frequently
advises financial institutions on some of their key legal challenges (e.g. in
relation to IBOR-transition, financial sanctions or ad-hoc / crisis situations). In
the transactional area, he represents arrangers and lenders active in the
region as well as borrowers and issuers in transactional work in Austria/CEE.
He has a proven track record in respect to many different types of complex
debt structures, where he advises lenders, investors/sponsors and
borrowers alike.
Martin specialises in finance (incl. corporate finance), limited-recourse
(project and acquisition) finance, leverage finance, transactions in banking
exposures and special situations investments, derivatives and structured
finance (incl. receivables and asset-based finance) as well as debt
restructurings and re-financings.
Andrea Feliciani
Andrea has 20+ year experience in structuring and executing asset backed
transactions in different capacities and jurisdiction.
Andrea joined Banca CF+ (formerly Credito Fondiario) in 2018; before that he
was heading the ABS team in London for CA-CIB after having worked for
Lehman Brothers for several years. Andrea started his career in Clifford
Chance specializing in ABS and structured finance transactions.
Andrea holds a JD from La Sapienza University in Rome and an LLM from
Fordham University (NYC) and was admitted to the NY BAR in 2004.
Arianna Volpato
Head of Master Servicer & Operations Zenith Service
Arianna started her experience in April 2019 as part of the Structuring Team
of Finanziaria Internazionale. She acted as arranger for Italian Covered Bond
Programmes and Securitisation of performing and non performing assets
with different type of collateral, e.g.: Residential Loans, Leasing Receivables,
SMEs Loans and Auto Loans. She joined Zenith Service in September 2017.
Arianna is in charge of the Master Servicer and Operations Area since
October 2018. She graduated in Economics in the University of Venice – Ca’
Foscari.
Andrea Feliciani
 Why Supply Chain Finance ?
Enterprises by # Enterprises by GDP Contribution Employment

Large En-

22.5Mln
terprises
0.20%
Large En-
SMEs SMEs employee terprises

EU-27
Large En- 35.00%
contribute terprises more than 82
46.98% SMEs
for the 53% 53.02% mln of workers
of the EU
Companies GDP
SMEs
65.00%

SMEs
99.80%

SMEs Large Enterprises SMEs Large Enterprises SMEs Large Enterprises

Key issues affecting SMEs

Covid-19 affected EU-27
SMEs disrupting global
Covid-19
supply chain and is
continuing
The SMEs have registered a greater increase in payment delays compared
to larger ones (+30 days). It has been showed an inversely
Payment Terms proportional rate between dimension and increase also amongst
SMEs

Supply chain disruptions and SMEs in Europe lack an estimated 400bn of bank-financing. SMEs
Energy and Raw recent conflicts and tensions
Financing Gap dependency on banks remains high in the Eurozone with 70% of external
Materials have increase raw material financing being reliant on banks vs 40% in the US
and energy costs

Can Supply Chain Finance (SCF) help the SMEs?

Supply Chain Finance

1
Facilitate Access to Financing

Key Objectives Reduce cost of Funding

Reduce Financing Needs

Type of Industry
2
Chain Flow
Evaluating not only the single SME but the entire chain in which it operates. It gives the possibility Profiling the
to better evaluate the business, the channels of provisioning, weaknesses and strengths
Chain Seasonality

3 Jurisdictions
Financial Analysis Customer
Analysis
Financial Analysis Supplier

…can provide a framework for the profiling of the value chain, including a wide range of aspects from
logistics and operations management, and offer a suited solution based on the specific SME’s needs.
 Supply Chain Finance Solutions
SCF Markets Size Only the 24-
27%* of the
market served Technological Impact
in Europe
€7 Tn
Focus on Trade
Receivables
Invoice Discount Securitisation Factoring Invoice Trading

€5 Tn
Focus on Debt
Receivables Forfaiting Reverse Factoring Confirming Dynamic Discount

Focus on Inventory Finance

Inventories

€4 Tn

DEEP TIER FINANCING

Challenges and
Opportunities BLOCKCHAIN

*Estimates for the 2021

Source: Report from Osservatorio Supply Chain Finance – Politecnico di Milano
Margaret Boswell
 SUPPLY CHAIN FINANCE
STRUCTURES
Factoring
1. Goods & Invoice

Supplier £100 due 90 days Customer

3. Purchase of
2. Invoice Invoice @ £90
day 2 4. Payment of
£100 day 90

Bank
 SUPPLY CHAIN FINANCE
STRUCTURES
Supply Chain Financing
1. Goods & Invoice

Customer £90 due now Supplier

or £100 in 90 days

2. Invoice 4. Payment of
£100 day 90
3. Payment of
£90 day 1

Bank
ISSUES IN STRUCTURING SUPPLY CHAIN
FINANCE
1. Accounting
 sales of assets (receivables) @ Supplier vs. financial indebtedness @ Buyer

2. Tax
 VAT on services by Bank (to …)
 documentary taxes (eg stamp duties)
 consolidation (impact on the group)

3. Legal and Regulatory

 LEGAL AND REGULATORY ISSUES IN
STRUCTURING
o Is the receivable capable of being transferred, and if so, how?
o Treatment on Insolvency / true sale
o Data Protection
o Consumer Protection
o Financial Regulation
o AML and KYC checks
o Sanctions
o Supply Chain Due Diligence
Annalisa Volpato
 THE MASTER SERVICER
The Servicing issues Servicer’s Challenges
o How to choose the sub o Frequency of Transfer
servicer? o Tailor Made Solutions
o The Difference between depending from the Seller’s
Collection and Recovery needs
o Who can be the subject in
charge of the recovery
process?
Questions from the floor