Working Capital Finance is crucial in addressing funding gaps for suppliers in global trade.
Suppliers often need immediate cash to cover operational costs while waiting for payment from buyers, who prefer to extend payment terms.
To bridge this gap, both suppliers and buyers are turning to non-bank entities for invoice financing.
Recent regulatory reforms have constrained banks' balance sheets, creating a funding gap estimated between USD 1.5 to 2 trillion.
This presents an opportunity for non-bank capital providers.
O’Connor is a key player in Working Capital Finance, using a relative value framework to optimize yield per unit of risk.
They have an open architecture approach, sourcing from various originators to enhance selectivity in funding decisions.
Risk management is crucial in Working Capital Finance, with payment default and fraud being primary concerns.
O’Connor mitigates these risks through rigorous underwriting practices and structural protections.
Ken Kozack, Head of Working Capital at O’Connor, brings extensive experience to the firm.
O’Connor has been actively managing its Working Capital Finance strategy for over four years, continuously expanding its exposure.
They evaluate potential investments based on creditworthiness and structural protections.
O’Connor is well-equipped to capitalize on the opportunities in the evolving trade finance landscape.