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What is supply chain finance?

    As global supply chains stretch across the globe with multinational buyers on one side and a diverse group of suppliers in numerous countries on the other, corporations are under pressure to unlock the working capital trapped in their supply chains. Supply chain finance, also known as supplier finance or reverse factoring, is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their large and SME suppliers to get paid early. This results in a win-win situation for the buyer and supplier. The buyer optimizes working capital, and the supplier generates additional operating cash flow, thus minimizing risk across the supply chain.
What you should know about supply chain finance!
   It is not a loan – Supplier finance or reverse factoring is an extension of the buyer’s accounts payable and is not considered financial debt. For the suppler, it represents a true sale of their receivables.
   It does not need to be tied to a single bank – Supply chain finance with SCiSupplier provides multibank capability by providing availability to more than 50 financial institutions worldwide.
   It is not factoring – With our solutions, 100 percent of each invoice-minus a very small transaction fee-is paid to the supplier, and there is no recourse burden on the supplier once the invoice is paid. 
   Supply chain finance is not just for large companies – It provides value for firms of all sizes and credit ratings, including SME suppliers.
   It does not require a bank – Our programs can be self-funded by the buyer, established without the participation of a bank for funding, or composed of a mixed program where financing is shared by the buyer, capital markets, and financial institutions.


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