Building Stronger Businesses with Supply Chain Finance
Cash flow management is one of the biggest challenges facing companies today. Suppliers often struggle with delayed payments, while buyers want to hold on to cash as long as possible to maximize working capital. Balancing these needs has never been easy, until now. Supply chain finance (SCF) provides a solution that benefits both sides. By introducing a financial intermediary into the process, SCF creates a win-win model that strengthens supplier relationships and optimizes liquidity for buyers. What Is Supply Chain Finance? Supply chain finance is a set of technology-enabled solutions that improve cash flow by extending payment terms for buyers while allowing suppliers to get paid earlier. Unlike traditional loans, where suppliers take on debt based on their own credit, SCF leverages the buyer’s stronger credit profile. This means suppliers can access early payments at lower financing rates, without adding debt to their balance sheet. Example: A buyer has 90-day payment terms, but th...