Who Can Participate in Supply Chain Finance?

Supply Chain Finance (SCF) brings together buyers, suppliers, financiers, and other ecosystem partners. The programs work best when buyers are large corporations or governments while suppliers are Small and Medium Enterprises (SMEs) looking for favourable financing. Banks and speciality finance firms provide the required capital and financing levers.

Please find below detailed information on who can typically participate in SCF:

Buyers: Large corporates and multinational companies with strong creditworthiness and multiple suppliers. They have negotiating power to extend payment terms.

Suppliers: SMEs and smaller vendors who supply to large buyers and need working capital liquidity. Includes manufacturers, distributors, dealers, retailers.

Financiers:

• Financial institutions that provide financing against a buyer's credit quality. This includes large global banks as well as regional and local banks.
• Specialty finance firms and fintech companies that offer technology-enabled SCF platforms and solutions.
• Logistics companies and 3PL (third-party logistics) providers that have visibility into the supply chain flow.
• E-commerce companies and online retailers that provide SCF to marketplace sellers.