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What is Supply Chain Finance?

What is Supply Chain Finance?

Supply chain finance is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers, while also providing an alternative option to their suppliers to get paid early. This results in optimized working capital for the buyer and enhanced cash flow for the supplier, while minimizing risk throughout the supply chain.

Clients all over the world recognize that supply chain finance:

  • Is not a loan – Supply chain finance, or reverse factoring, is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, this represents a true sale of their receivables.
  • Does not need to be tied to a single bankSupply chain financing with OpenSCi provides multi-bank funding with the availability to link to more than 40 financial institutions worldwide.
  • Is not factoring – With our solutions, the whole amount of each invoice — minus a very small transaction fee — is paid, and there is no recourse burden on the supplier once the invoice is paid.
  • Is not just for large companies – Supply chain finance provides value for firms of all sizes and credit ratings.
  • Does not require specialized software – OpenSCi runs in the cloud and is accessible by any buyer, supplier and funder with Internet access, eliminating the need for expensive software purchases or time consuming implementations.
  • Does not require a bank – Our programs may be self-funded by the buyer, established without the participation of a bank for funding, or comprised of a mixed program where some financing is shared by the buyer and other financing by one or more additional funders.

With OpenSCi, the implementation and ongoing management of a supply chain finance program is made easier and faster than ever before. Ask us to prove it by contacting us now.

If you want to learn more, please view our infographics on supply chain finance.

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