Supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. The primary function of supply chain management involves the transformation of raw materials into finished products.
Talking about that, supply chain finance encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities of a business.

What is Supply Chain Finance?

Supply chain finance aids enterprises in streamlining their SCM to achieve operational excellence and increase turnover. Companies can apply for SCF to fund their dealers and vendors. They can also opt for factoring with SCF.

What are the benefits of Supply Chain Financing?

  1. Collateral-free Financing Option: The first and foremost benefit of supply chain financing is the availability of funds without any collateral. Unlike other credit schemes, you can avail a loan without mortgaging any collateral. Plus, you won’t have the fear of losing your property if you fail to repay the debt.
  1. Fast Approval of the Loan Application: Secondly, since the said scheme is collateral-free in nature, the approval for loan should happen much faster compared to any other schemes.
  1. Flexible Repayment Period: The repayment tenor is directly proportional to the loan amount. Higher loan amount would require a long repayment time and vice versa. Keeping that in mind, you get a flexible repayment tenor along with your loan.
  1. Simple Eligibility Criteria: Last but not least, the eligibility criteria is very simple to follow. In addition, the documentation process is very quick, only a few documents required.