Why Implement Supply Chain Finance?

SCF is no rocket science.

It leverages on the stronger credit rating of the buyer and hence cheaper financing rate can be passed on to SME suppliers.

Supplier would then have non-recourse financing without using their own credit facility. SCF credit line is set up by the FI assuming the credit risk of the buyer. Latter can benefit from such SCF program as it is normally treated as an accounts payable and not a bank loan on their balance sheet.

It helps to improve their leverage ratio. Ultimately win-win for both the buyer and supplier.

Contact us to find out more how it works.