Supply chain financing (SCF) is a financing solution that brings buyers, sellers and lenders together. This arrangement helps clear and unlock the working capital locked in the supply chain. It helps businesses improve liquidity, build stronger supplier relations, and reduce supply chain risks. Despite the many benefits this arrangement offers to all stakeholders, it has […]
Loan Against Invoices: Advantages and Disadvantages for Lenders
Small and medium-sized enterprises (SMEs) and business-to-business (B2B) firms have embraced the necessity of maintaining consistent cash flow or credit lines to clear dues and support their day-to-day operations. SMEs and B2B firms constantly look for funding options that suit their needs, ensuring consistent cash flow. As a result, loan against invoices or loan invoicing […]
Working Capital Lending Risk Assessment: Best Practices & Pitfalls
In the current financial year, businesses are expected to require Rs 11.2 lakh crore in working capital, up from Rs 8.7 lakh crore in the previous year. As a result, businesses will need more capital to meet their operational expenses, such as inventory purchases, salaries, and other expenses. As the lending sector becomes increasingly competitive, […]
Changes in Supply Chain Financing Disclosures: Everything You Need To Know
Supply chain financing (SCF) is a funding solution that uses innovative technologies to help manage cash flows and address liquidity constraints insu international trade. The World Trade Organization (WTO) estimates that between 80% and 90% of global trade is backed by some kind of short-term trade finance. Global supply chains are yet to be fully […]
Why Are Lenders Betting Big on Supply Chain Finance?
Micro, Small, and Medium Enterprises (MSMEs) are often considered the backbone of the Indian economy, and they account for approximately 30% of India’s GDP and employ close to 111 million individuals. The COVID-19 pandemic posed many challenges across industries and disrupted supply chains. The current Russia-Ukraine war and periodic lockdowns in China have added to […]
Why Is Supply Chain Financing a Lifeline for SMEs in Difficult Times?
In recent decades, small and medium-sized (SME) enterprises have become more prevalent in global supply chains because of globalisation. However, the Covid-19 crisis has exposed them to the perils of transnational shocks and liquidity crisis. In the tumultuous post-Pandemic economic climate, Supply Chain Financing as a financing option for SMEs has witnessed tremendous growth. It […]