imported>Doug Williamson |
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| Simply defined, supply chain finance (SCF) is an arrangement whereby:
| | == Summary == |
| *A supplier of goods or services is able to obtain finance
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| *Based on the existence of a receivable due from the purchaser of those goods or services.
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| If the arrangement is [[non-recourse]] to the supplier then the funding will be based on the credit standing of the purchaser.
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| In this simple sense, supply chain finance 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.
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| Defined more broadly, supply chain finance can be viewed as:
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| *The use of financing and risk mitigation techniques
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| *To improve the management of the working capital and liquidity invested in supply chain processes and transactions.
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| ==See also== | |
| * [[Dynamic discounting]]
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| * [[Factoring]]
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| * [[Finance]]
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| * [[Invoice discounting]]
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| * [[Liquidity]]
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| * [[Non-recourse]]
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| * [[Payments and payment systems]]
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| * [[Physical supply chain]]
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| * [[Receivables]]
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| * [[Risk mitigation]]
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| * [[Supply chain management]]
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| * [[Working capital]]
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| * [[Market-based approaches to cash management and liquidity]]
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| ===Other links===
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| *[http://www.treasurers.org/node/8986 ACT breakfast briefing: supply chain finance, May 2013]
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| *[http://www.treasurers.org/node/8745 Masterclass: Supply chain finance, The Treasurer, February 2013]
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| [[Category:Trade_finance]]
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