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What is supply chain finance?
Feb 14, 2022
BSOS Blog
Supply Chain Finance
FinTech

What is supply chain finance?

Supply Chain Finance (SCF) is a cash flow optimized solution for supply chain industry, which is so-called supplier financing. It allows buyers to extend their payment term to suppliers, and provide early payment options for suppliers concurrently. The purpose is to lower the financing cost and increase the business efficiency. Supply chain finance is also known as reverse factoring.

The reason why supply chain finance was born is the payment term given by the buyer is longer than the supplier's working capital burn rate, which triggered the cash flow problems. Based on the foundatal supply chain finance model, buyers will verify the supplier’s invoice and the bank or the third-party capital providers will pay the accounts receivable back first to optimize the working capital for both needs.

Hence, as we can see, supply chain finance demonstrates the win-win situation - suppliers can get the fund immediately and the buyers can have more time to pay back, optimizing their working capital, which can lower the whole supply chain risk.

BSOS provides the new generation of supply chain finance product, BSOS SUPLEX. BSOS SUPLEX can simultaneously achieve win-win-win situations among buyers, sellers and the capital providers by giving two options - supply chain finance and dynamic discounting solution.

SUPLEX - How it works:https://youtu.be/wOo0a-iss5k

Start for free:https://bsostaiwan.pse.is/3wu8qy

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