What Are the Benefits of Supply Chain Finance?

Here are some of the key benefits of Supply Chain Finance SCF:

For Suppliers:

• Improved cash flow and liquidity - Allows suppliers to get paid early for invoices through financing
• Access to capital - Enables suppliers to finance against orders before final invoices are raised
• Reduced risk - Helps suppliers rely on the creditworthiness of buyers, minimizing their own financial risk
• Stable growth - Enables suppliers to fund operations and address growth needs

For Buyers:

• Extended payment terms - Buyers can negotiate longer payment dates with suppliers
• Strengthened supplier relationships - Early payments support suppliers, fostering stronger partnerships
• Supply chain resilience - Minimizes supply disruptions by ensuring supplier liquidity
• Strategic advantage - Provides the option to to support key suppliers and distributors

For Financiers:

• New business opportunities - Financiers can leverage new SCF products and services
• Competitive advantage - SCF offers a differentiation from traditional financing
• Additional revenues - Generates income through fees and interest from financing
• Risk mitigation - Focuses on the stronger credit profiles of buyers, reducing risk exposure

Overall Benefits:

• Optimised working capital - Frees up capital across the supply chain
• Enables business growth - Supports growth opportunities for both buyers and suppliers
• Stronger partnerships - Fosters alignment and collaboration between buyers and suppliers
• Process efficiency - Streamlined financing reduces delays and disruptions in transactions