SCF (Supply Chain Financing) is a banking business vertical becoming increasingly prevalent.
When successfully implemented, supply chain financing benefits the whole ecosystem: it allows corporate purchasers to protect inventory by expanding payment terms and increases suppliers’ assurance regarding future purchases. Banks and nonbank SCF providers create consistent, short-duration (and thus lower-risk), and frequently repeating transaction volumes while paving the way for broader solutions, including cash management, capital-markets solutions, and foreign exchange.
SCF provides MSMEs and companies with working capital optimization and the conversion of cash cycle benefits. It also affords banks the chance to cultivate long-term connections and cross-sell items.