Supply chain financing is a method for companies to ensure they have the funds they need to get their goods from the production plant to the store. It’s also a way for companies to make sure they will get paid by their customers even when some problem occurs in the supply chain.
Most of the time, suppliers and buyers who can’t get regular lines of credit use supply chain finance. Companies use supply chain finance instead of loans or credit cards to make sure they have enough money at every step of the supply chain to keep their business running smoothly and make sure they get paid on time.