Mastercard has partnered with British financial technology company Demica to offer supply-chain finance to its business clients, showing the continued strength of demand for the lending product even after the collapse of Greensill Capital.
Matt Wreford, Demica’s chief executive, said the collapse of Greensill had “no impact” on the wider market, however, because the company’s problems stemmed from esoteric forms of supply-chain finance that no other financial institution offered. He added that the partnership with Mastercard would allow smaller suppliers to benefit from the product and set the cost at which they accept it. “It’s supplier-centric . . . That basically cuts out all of the ability for bad acting to take place,” Wreford said. “This isn’t about balance sheet engineering, this is about supporting the real economy.”