How Supply Chain Financing Brings the Healthcare Supply Chain to Scale

Businesses face a lot of obstacles on the path to success. For some, it’s industry dynamics or internal politics. For others, it’s quality control of the product or service. But, the biggest obstacle – the one that most often stops business growth in its tracks – is cash flow.

Rapid growth, economic instability, innovation pressures and seasonality are just some of the reasons why companies suffer from a lack of access to working capital and cash flow deficiencies. Pressure to provide customers with more value and more innovation at a lower cost has eroded margins. Simultaneously, large buyers within the supply chain are extending supplier payment terms out further and further, or simply paying late.

Historically, companies have turned towards commercial lending to address this problem. Others have implemented factoring programs. Each of these tactics offers faster access to capital, but it comes at a price. This forces an important question (and challenge) facing today’s companies: Is there a better way to increase cash flow?

In this white paper, we discuss:

• The pros and cons of accounts receivable finance alternatives, including asset-based lending, traditional factoring and selective receivables finance
• Why more companies are turning to selective receivables finance to accelerate cash flow
• Things to consider when choosing a selective receivables finance platform