One of the most important decisions a company will make when selecting a supply chain finance partner is whether to choose a single bank program or one that leverages multiple funders. It’s a choice that has significant bearing on program success, coverage, financial risk and – most importantly – the ability for companies to meet the larger business objective(s) at stake.
Whether you already have a program in place or are looking to implement one for the first time, navigating the current supply chain finance provider landscape isn’t easy. It includes a mix of financial institutions, fintech vendors (both established industry leaders and new entrants) and more – each of which bring a unique perspective to supply chain finance. As a result, it’s become difficult to pinpoint how some providers fund their supply chain finance offerings and whether their approach falls into the category of single funder or multi-funder.
This white paper outlines important considerations to both validate the funding arrangements of a potential supply chain finance provider and evaluate the success of your current program. Key questions answered in this guide include:
- What are the differences between a multi-funder and a single bank approach to supply chain finance?
- What are the advantages and disadvantages of each?
- What are some common misperceptions about both?