Supply Chain Finance
Supply Chain Finance (SCF) is a set of financial solutions that optimize cash flow within a supply chain. It involves collaboration between buyers, suppliers, and financial institutions to improve the efficiency of transactions. By providing early payment options to suppliers, SCF helps businesses manage their working capital more effectively.
Through SCF, suppliers can receive payments sooner, which enhances their liquidity and reduces financial strain. Buyers benefit from extended payment terms, allowing them to hold onto cash longer. Overall, Supply Chain Finance fosters stronger relationships between partners and contributes to a more resilient supply chain.