Supply chain finance: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
imported>Doug Williamson (Link with new Supply chain management page.) |
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Revision as of 12:17, 10 February 2015
Supply chain finance (SCF) is an arrangement whereby a supplier of goods or services is able to obtain finance based on the existence of a receivable due from the purchaser of those goods or services.
If the arrangement is non-recourse to the supplier then the funding will be based on the credit standing of the purchaser.
It is a form of invoice discounting, but is usually distinguished by the fact that there is a well structured scheme or arrangement to facilitate that invoice discounting, very often involving electronic invoicing, record keeping or communication.
See also
