Why Suppliers Choose Supply Chain Finance

By PrimeRevenue • Published May 5, 2022 • 3 minute read

Cash flow optimization is a strategic imperative for many companies. Unfortunately, it often happens on the backs of suppliers. Take longer payment terms, for example. While longer payment terms benefit the buying organization’s cash flow cycle, they have the opposite effect on suppliers. In fact, depending on the size and the financial health of the supplier, longer time-to-payment can derail growth and stifle competitiveness. It’s no wonder that most suppliers view longer payment terms through a negative lens.

Except when supply chain finance is involved. By offering suppliers a way to get paid early, suppliers can mitigate the impact of longer payment terms and accelerate cash flow. But what are some of the other reasons suppliers should participate in supply chain finance? How else can it benefit their business?

In this white paper, we investigate other reasons why suppliers choose supply chain finance. Through real-world case studies, we discuss how supply chain finance is helping suppliers to:

  • Invest in scalable growth and innovation
  • More easily weather economic turbulence
  • Access liquidity at a much lower cost compared to traditional funding options
  • Gain visibility into payment timing and amounts
  • And more…

Why Suppliers Choose Supply Chain Finance