Supply chain finance: Difference between revisions
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Supply chain finance (SCF) is an arrangement whereby a supplier of goods or services is able to obtain finance based on the | 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. | 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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*[http://www.treasurers.org/node/8745 Masterclass: Supply chain finance, The Treasurer, February 2013] | *[http://www.treasurers.org/node/8745 Masterclass: Supply chain finance, The Treasurer, February 2013] | ||
[[Category: | [[Category:Trade_finance]] | ||
Revision as of 11:18, 4 March 2014
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
