SCF refers for solutions that use technology to lower financing costs and improve business efficiency for both buyers and sellers in a sales transaction occurring in MSME. It helps the MSMEs by filling in gaps in their finances and giving them much-needed cash.
In supply chain financing (SCF), the money follows the value as it moves through the supply chain. SCF is fairly new, and it is different from traditional ways of getting working capital financing, like factoring or offering settlement discounts. For a MSME, SCF promotes collaboration between buyers and sellers in the supply chain.