Supply chain finance is a type of financial arrangement that involves providing funding to companies in a supply chain. This can include the supplier, the manufacturer, the distributor, and the retailer. The goal of supply chain finance is to help companies manage their cash flow and improve their ability to operate efficiently and effectively.
There are several reasons why a company might choose to use supply chain finance. One reason is to improve the company's cash flow. By providing funding to companies in the supply chain, supply chain finance can help businesses to manage their short-term cash flow needs. This can be especially useful for companies that have a lot of upfront costs, such as purchasing raw materials, but have to wait for payment from their customers.
Another reason is to reduce the risk of non-payment by customers. When a company uses supply chain finance, it is typically able to receive payment for its goods or services before the customer has to pay. This means that the company is able to reduce its exposure to the risk of non-payment.
Overall, the market for supply chain finance is driven by the need for businesses to manage their cash flow and reduce the risks associated with their supply chain. By providing funding to companies in the supply chain, finance companies help businesses to operate more efficiently and effectively.
Qube Supply Chain Finance Added Value
PRI® Supply Chain is a proprietary payables & receivables management platform, supported by Qube Servicing, generating improvement of working capital by accelerating the payment cycle and turning receivables into cash faster.
The PRI® Supply Chain platform manages, controls and monitors , on a daily basis as well as intraday, all tasks defined as part of supply chain finance to ensure:
- Enhanced visibility of approved invoices;
- Accelerated collections processes;
- A low-cost financing option; and
- Streamlined account reconciliation and forecasting.
PRI® Supply Chain has been developed based on the in-depth experience with supply chain finance as well as receivables finance with the objective to have a fully front-to-backend automated supply chain finance platform based on historic and actual creditor data which to provide full insight & transparency which will be evidenced by demo on request.