Supply Chain Finance vs. Factoring

Infrastructure upgrades. Competitive operational initiatives. Economic volatility. Longer payment terms. There are a million reasons why a supplier might need to get paid early for its products or services, but they all point to one overarching need – the need for better cash flow. In fact, given the risks and chokepoints in today’s global supply chains, this need has become an elevated concern.

Factoring and supply chain finance are two of the most common ways suppliers receive early payment. But what are the advantages and disadvantages of these two approaches? Which approach should be used when? Does one outperform the other?

This white paper helps companies cut through the confusion to understand the following:

• How each approach works and how they’re different
• The pros, cons and realities of factoring and supply chain finance
• Five reasons why suppliers choose supply chain finance over factoring to improve cash flow