What is Supply Chain Finance?

What is Supply Chain Finance?

Many small businesses don’t have large complicated or sophisticated supply chains, however, there is still an element of this. Manufacturers for example need a constant supply of very particular raw materials in order to keep operations running and it’s a similar story for restaurants and other industries.

Maintaining a constant stream of cash flow is one of the most challenging tasks that small businesses can face. Businesses like yours often only operate on tight budgets and unwelcome financial challenges can cause major disruption. Late payments, equipment breakdowns and unexpected fees or taxes can cause cash flow issues but are a normal part of doing business.

Supply Chain Finance is one of the most powerful tools around that will help SME’s to tackle these issues head on. Supply Chain Finance allows for businesses not only to completely stabilize their own financial position, but also that of their supply partners. Therefore, ensuring capital is free to aid growth. All in all, businesses need strong supply chains in order to fuel growth.

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What are the Benefits of Supply Chain Finance?

Improved Supplier Stability
Supply Chain Finance makes it easier for your business to pay suppliers on-time by allowing businesses to draw from a separate investor credit fund. If a supplier is dealing with a cash-flow issue, they could request early or advance payment in exchange for an agreed discount. This allows businesses to consistently provide top-notch services to customers.

Ability to defer outgoing payments
SME’s can use supply chain finance to directly deal with their own cash-flow issues also. In the unfortunate event you have a cash-flow interruption, the funds can be utilised to manage the issue and the balance on your credit can be paid off over a longer period.

Stronger Business Credit
Aside from having stronger working capital in your business having a strong cash-flow and health supply chain will enable businesses to build out their credit profiles and potentially apply for larger business loan amounts in the future. Potentially allowing for larger scale expansion into new markets, opening new stores or opening up in more locations.

Stronger Supplier Relationships
Faster payments for the supplier generated on behalf of the buyer having taken out supply chain finance leads to stronger relationships. Reduced costs and discounts could follow for the prompt payment. The level of service can also be more consistent meaning no supply interruptions which keeps customers happy.

SECURE £3,500 - £500,000 OF SUPPLY CHAIN FINANCE

What are the Benefits of Supply Chain Finance?

Improved Supplier Stability

Supply Chain Finance makes it easier for your business to pay suppliers on-time by allowing businesses to draw from a separate investor credit fund. If a supplier is dealing with a cash-flow issue, they could request early or advance payment in exchange for an agreed discount. This allows businesses to consistently provide top-notch services to customers.

Ability to defer outgoing payments

SME’s can use supply chain finance to directly deal with their own cash-flow issues also. In the unfortunate event you have a cash-flow interruption, the funds can be utilised to manage the issue and the balance on your credit can be paid off over a longer period.

Check Eligibility

Stronger Business Credit

Aside from having stronger working capital in your business having a strong cash-flow and health supply chain will enable businesses to build out their credit profiles and potentially apply for larger business loan amounts in the future. Potentially allowing for larger scale expansion into new markets, opening new stores or opening in more locations.

What Supply Chain Obstacles Could I Face?" alt="What Supply Chain Obstacles Could I Face?">

What Supply Chain Obstacles Could I Face?

Small and medium sized businesses face similar challenges to larger organisations when it comes to supply chains. But the severity and harsh press on a small businesses finance can be much greater. McKinsey recently released a piece of research which details the various supply chain challenges faced by businesses such as yours. 61% of companies said that their main priority is reducing operating costs.

  • Maintaining Partner Relationships
  • Expanding into Foreign Markets
  • Complex Customer Demand Patterns
  • Increasing Transport and Logistic Costs
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SECURE £3,500 - £500,000 OF SUPPLY CHAIN FINANCE

Supply Chain Finance: What are my options?

Capify offers two main business funding solutions to help businesses build a robust supply chain network. See our supply chain finance business loan options below:

Supply Chain Finance Business Loan

The Capify Business Loan was created for limited companies* who have been trading for at least 12 months. Our supply chain finance business loan is designed to provide much-needed working capital. Business loan customers repay on a little and often basis, usually daily or weekly to help with cash flow management. They don’t have to worry about a large monthly repayment on a fixed date each month. Loans are available from £5,000 to over £500,000.

Merchant Cash Advance For Supply Chain Finance

If you’ve got exciting plans to grow your business, the Capify Merchant Cash Advance could be the perfect solution. It’s ideal for businesses who accept credit and debit card payments from their customers; like retailers, pubs, bars and restaurants.

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Supply Chain Finance: What are my options?

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