Vendor finance: The accidental credit investors

Recent defaults on equipment vendor loans have prompted questions about the way corporates manage credit risk. Industrial companies have amassed many billions in credit exposure as a side product of their main business. Now, under growing pressure from equity investors and rating agencies, some companies are starting to quantify and reduce their mountains of trade debt.

Author: Michael Peterson

When times are good it is easy to be a banker. In every economic boom in history, banks have thrown money at companies – only to see debts go bad when the winds of economic fortune change. As a sharp chill descends on the world economy, history is repeating itself with a surprising twist. In the technology-fuelled euphoria of the recent boom, some of the biggest and most reckless lenders were not banks at all but industrial companies.

Vendor finance: The accidental credit investors

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Vendor finance: The accidental credit investors

Thanks for your interest in Euromoney!To unlock this article:

The world’s best private banks for digital

Rebuilding banks from the inside out in the digital age

Eastward bound: Why Gulf banks are tapping Asia’s capital markets

Islamic Finance Innovation 2025

Thanks for your interest in Euromoney!
To unlock this article: