Supply Chain Financing

A company’s supply chain is like the body’s circulatory system. Any interference, slowdown, disruption or cessation endangers the health of the entire organism. No matter the size or extent of your organization, you can keep your supply chain (and business operation) in motion while adding value to your entire operation, with supply chain financing innovations from ExpoCredit.

What is Supply Chain Finance?

Supply Chain Finance (SCF) is not factoring, and it is not a loan. It is a long-term funding solution, based on short-term payables. The best definition of supply chain finance, as stated in Industry Week magazine, is that it facilitates transactions between trading partners by providing financing and payment options that are negotiated to improve each trading partner’s financial position.[1]

Per Treasury Management International, supply chain financing should be a strategic decision, supported by the organization. Companies should evaluate SCF from a working capital management perspective as well as a means of more readily securing the goods and services needed from off-shore suppliers.[2]

Adding Value

A recent article in Supply Chain Brain points out that in most companies, supply chain finance is seen as a narrow and limited tool rather than a strategic enabler of success. As a result, some of the potential value of this tool remains uncaptured.[3] The point is stressed that supply chain financing should be viewed as a strategic way to effectively and efficiently manage working capital. Adding the right supply chain finance products to your strategic tool kit can help you nurture important supplier relationships, and enhance your status as a preferred customer. Your suppliers are also more likely to accommodate your urgent requests.

ExpoCredit’s Supply Chain Financing Solutions

ExpoCredit provides supply chain finance solutions, enabling all types of companies to move forward, sustain growth, and achieve their strategic objectives. In situations where a supplier does not grant credit terms, ExpoCredit facilitates the transaction by paying the supplier upfront. Simultaneously, ExpoCredit extends credit terms of up to 90 days to your company, giving you the time needed to deliver the products or services to your clients.

ExpoCredit leverages extensive experience in international and domestic markets across a multitude of industry sectors. ExpoCredit has a multinational reach, and offers services and expertise in supply chain financing to companies worldwide.

ExpoCredit’s funding solutions can increase the reliability of your supply chain, and can also make your supply chain more flexible and scalable, bringing key advantages to your business. For example, if a new product exceeds sales expectations, having ExpoCredit in place ensures the extra liquidity needed to meet increased demand without disruption.

Supported by the right supplier finance solutions, your company gains the opportunity to strengthen strategic supplier relationships. This enhances the reliability, flexibility and innovation of your supply chain, while optimizing your working capital. ExpoCredit’s financing tools can keep your supply chain agile, cost efficient and positioned for growth. The more well-funded your supply is, the better it can function to promote growth and improve profit margins.

For more details, visit www.expocredit.com

[1] https://www.treasury-management.com/showarticle.php?pubid=1&issueid=184&article=1631&page=showarticle&pageno=1
[2] https://www.supplychainbrain.com/content/research-analysis/chainlink-research/single-article-page/article/a-limited-view-of-value-of-supply-chain-finance-can-cost-you-a-bundle/
[3] https://globalconnections.hsbc.com/global/en/articles/strengthening-supply-chain-through-supplier-finance-tools