Supply chain financing is one of the most beneficial types of financing in manufacturing and distribution businesses. Let’s take a quick look at its dynamics and benefits for businesses. 

What is Supply Chain Financing:

Supply chain financing, sometimes referred to as supplier financing or reverse factoring, is a type of financial arrangement that enhances a supply chain’s cash flow by paying suppliers ahead of schedule. The buyer, who is frequently a larger firm or corporation, the supplier, who is a smaller company that offers the buyer goods or services, and a financial institution or lender work together in this collaborative strategy.