Supply chain finance (SCF) is a financial tool that can help to bridge the gap between the placement of an order and the delivery of goods. SCF involves the use of various financial instruments and services, such as trade finance and factoring, to help companies manage their cash flow and working capital more effectively.
One of the key benefits of SCF is that it can provide companies with access to additional working capital that they can use to fund their operations and support the growth of their businesses. For example, when a company places an order for goods, it may have to pay for those goods upfront, even if it won't receive payment from its customers for several weeks or months. This can create a gap between the placement of the order and the receipt of payment, which can put pressure on the company's cash flow and working capital.
SCF can help to bridge this gap by providing the company with access to financing that it can use to pay for the goods upfront. This can allow the company to maintain its cash flow and working capital, and can also help to improve its overall financial performance. Additionally, SCF can also help to improve the efficiency and effectiveness of the supply chain, as it can provide companies with better visibility into their cash flow and working capital, and can allow them to more effectively manage their inventory and other assets. Overall, SCF can be an effective tool for helping companies to manage their cash flow and working capital, and to support the growth and success of their businesses.
Qube Supply Chain Finance Added Value
PRI® Supply Chain is a proprietary payables & receivables management platform, supported by Qube Servicing, generating improvement of working capital by accelerating the payment cycle and turning receivables into cash faster.
The PRI® Supply Chain platform manages, controls and monitors, on a daily basis as well as intraday, all tasks defined as part of supply chain finance to ensure:
- Enhanced visibility of approved invoices;
- Accelerated collections processes;
- A low-cost financing option; and
- Streamlined account reconciliation and forecasting.
PRI® Supply Chain has been developed based on the in-depth experience with supply chain finance as well as receivables finance with the objective to have a fully front-to-backend automated supply chain finance platform based on historic and actual creditor data which to provide full insight & transparency which will be evidenced by demo on request.