Supply Chain Financing
Content
Definition
Supply Chain Financing refers to a set of solutions that optimize cash flow by allowing companies to lengthen their payment terms to suppliers while providing the option for their suppliers to get paid early.
Usage and Context
Supply chain financing helps improve cash flow by extending payment terms while allowing suppliers to receive payments sooner.
Frequently asked questions
- What are the environmental metrics for sustainability? Environmental metrics for sustainability measure a company’s impact, such as carbon footprint, energy use, and waste management.
- How supply chain finance can drive cash flow? Supply chain finance enhances cash flow by enabling suppliers to receive payments faster while allowing buyers to delay their payments.
- What is the difference between supply chain financing and inventory financing? Supply chain financing optimizes cash flow by paying suppliers early, while inventory financing uses inventory as collateral for a loan.
Benefits
Supply chain financing optimizes cash flow by extending payment terms while offering suppliers early payment.
Conclusion
Supply chain financing enhances cash flow by extending payment terms while allowing suppliers to receive payments sooner.
