How do I apply for Supply Chain Finance?

Supply Chain Finance (SCF) is a solution that helps businesses access working capital by receiving early payments against their invoices. Here are the typical steps to apply for SCF:

• Identify need: Companies first identify a need for additional working capital to fund operations while waiting for invoices to be paid. Access to cash flow is often a pain point, especially for smaller suppliers.
• Check buyer relationships: Suppliers then check if any major customers offer supply chain finance programs. Large buyers often implement these programs through banks or fintech platforms. The buyer's credit rating backs the financing.
• Submit application: Suppliers complete an application outlining their invoices, order volumes, and financing needs to the banks or NBFCs (Non-banking Financial Companies). More data makes for better terms.
• Get approved: The supply chain finance provider reviews the application and typically approves suppliers in good standing for initial funding limits. These limits can increase over time.
• Select invoices: Once approved, suppliers select unpaid invoices to get early payments, often at more favourable discount rates than traditional lending. The process is automated through the finance platform.
• Receive funding: Within days, suppliers receive short-term funding for the selected invoices. This provides working capital until the buyer pays them as normal 30, 60, or 90 days later.

Overall, the process provides simplified access to cash flow based on a supplier's existing customer invoices. With this working capital, suppliers can better manage operations and grow alongside major customers.