1 / 8

Supply Chain Financing The Future is Here

The entire supply chain sector is in the midst of a digital transformation. The rise of e-commerce has created new opportunities for growth, but it has also led to enormous challenges related to delivery and order fulfillment. Companies are struggling to keep up with demand as well as manage their cash flows effectively so that they can invest in new technologies and increase productivity.<br>

m1xchangeseo
Download Presentation

Supply Chain Financing The Future is Here

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Supply Chain Financing: The Future is Here By – M1Xchange.com

  2. Introduction The entire supply chain sector is in the midst of a digital transformation. The rise of e-commerce has created new opportunities for growth, but it has also led to enormous challenges related to delivery and order fulfillment. Companies are struggling to keep up with demand as well as manage their cash flows effectively so that they can invest in new technologies and increase productivity.

  3. Why is it important? One of the biggest issues for businesses is managing cash flow. Supply chain financing is a way to help manage this. With supply chain financing, you can avoid cash flow problems which could result in going out of business or filing for bankruptcy.

  4. Supply Chain Financing Defined Supply chain finance is a way to help companies manage their cash flow. It's the use of cash management techniques to help businesses manage their cash flow.

  5. Supply Chain Finance Model 1: Traditional Invoice Factoring One of the best known types of finance is invoice factoring. This is where you sell invoices that are due to be paid in exchange for cash up front. The most common use case is when a company needs money to fund inventory, working capital or accounts receivable. In terms of supply chain finance, invoice factoring can be used as an alternative source of financing for companies with large volumes of invoices (like $1 million+). For example, if your business sells products and services on credit terms that range from 30 days to 45 days (or longer), then invoice factoring may be beneficial for you.

  6. Supply Chain Finance Model 2: Reverse Factoring or Supplier Finance Another type of supply chain financing is supplier finance. As the name suggests, this is a form of trade financing that allows businesses to pay their suppliers before the customer pays them. It's one of the many forms of supply chain finance available today and has become increasingly popular as clients seek alternatives to traditional bank financing. Supplier finance works similarly to factoring, but instead of selling invoices and waiting for payment from debtors (customers), you can sell your receivables at a discount. You'll then receive cash immediately while continuing to earn interest on your accounts receivable until they're paid off by customers—which can be anywhere between 30-90 days after purchase!

  7. Conclusion Supply Chain Finance is a unique financing option that can help businesses expand their operations and bring more products to market faster. It’s an essential tool for companies looking for capital to fund their growth or expand into new markets.

  8. Thank You

More Related