When a lender discounts an invoice on a Trade Receivables Discounting System (TReDS) platform, the money moves within a day or two. Confirmation that the same invoice hasn’t been financed somewhere else doesn’t always move at the same speed. A seller short on working capital uploads the same receivable to two platforms in the same […]
Bill Discounting vs Invoice Discounting: LMS Configuration Guide
The terms are used interchangeably so often that even experienced lenders stop questioning them. Bill discounting, invoice discounting, trade finance, receivables financing: these get bundled into the same category as if the underlying product structure, and therefore the Loan Management System (LMS) configuration, were identical. But they are not. For a lending operations team building […]
4 Supply Chain Financing Gaps NBFCs Overlook
Supply chain financing (SCF) looks attractive on paper. Short tenures, anchor-backed risk, invoice-level visibility, and a borrower base that often lacks access to other credit channels. For NBFCs looking to expand their working capital portfolio, it ticks several boxes. The challenge is that SCF operates by a different set of mechanics than term lending, and […]
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 […]