Working Capital Finance is essential for suppliers in global trade who often face funding gaps due to extended payment terms. This creates a need for immediate cash to cover operational expenses.
Factoring and reverse factoring are funding solutions that address this need. The trade finance market currently has a significant funding gap, which has been worsened by regulatory reforms. Non-bank capital providers are stepping in to fill this void.
O’Connor employs a multifaceted approach to navigate the complexities of Working Capital Finance, utilizing an open architecture model and capitalizing on opportunities during market volatility. Payment default and fraud are risks in Working Capital Finance, which O’Connor mitigates through rigorous underwriting practices and structural protections.
Ken Kozack, the Head of Working Capital at O’Connor, brings extensive experience to the firm. O’Connor has a robust framework for evaluating potential investments, ensuring legal compliance and assessing relative value.
The importance of Working Capital Finance is likely to grow as the global trade landscape evolves, and O’Connor is well-positioned to capitalize on these changes.