SCF is advantageous for both suppliers and buyers since it provides financial stability and predictability within a stable partnership. Cash received immediately, as opposed to later, affords suppliers the opportunity for business expansion. The enhanced resilience of the supply chain promotes stability and profitability for the Buyer.
On the other side, banks are growing to be conservative with their loan models, and when combined with more stringent banking rules, credit is neither as affordable nor as available as it once was. As a result, traditional banks are becoming increasingly difficult for SMBs to secure credit. The research found that the Asian Development Bank denied 50% of SME trade loan applications.