{"id":14616,"date":"2018-09-10T20:51:41","date_gmt":"2018-09-10T20:51:41","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=14616"},"modified":"2025-03-02T20:20:22","modified_gmt":"2025-03-02T20:20:22","slug":"trade-financial-supply-chain-management","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/treasury-management\/trade-financial-supply-chain-management\/","title":{"rendered":"Trade Financial Supply Chain Management"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-trade-financial-supply-chain-management\">\n        Trade Financial Supply Chain Management    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 02 Mar 2025<\/div>\n                <div>10 Sep 2018 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Financial-Supply-Chain-Management-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column mb-16 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-basics-overview\">Basics Overview<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/\">\n        Introduction to Treasury Management      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/cash-liquidity-management\/\">\n        Cash &#038; Liquidity Management      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/cash-conversion-cycle-definition-and-uses\/\">\n        Cash Conversion Cycle \u2013 Definition and Uses      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/libor-trade-finance\/\">\n        LIBOR Transition      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns country-quick-link h-100 mb-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column mb-16 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-risk-finance\">Risk &#038; Finance<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/treasury-liquidity-risk-management\/\">\n        Liquidity &#038; Risk Management      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/corporate-finance\/\">\n        Corporate Finance      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/days-sale-outstanding\/\">\n        Days Sale Outstanding (DSO) \u2013 Definition and Uses      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column mb-16 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-financial-analysis\">Financial Analysis<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/cash-flow-advanced-forecasting\/\">\n        Cash Flow &#038; Advanced Forecasting      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/debtor\/\">\n        Debtor      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/creditor\/\">\n        Creditor      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/iso-20022\/\">\n        ISO 20022      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column mb-16 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-solutions\">Solutions<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/trade-finance-software\/\">\n        Treasury Management Software (TMS)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/trade-financial-supply-chain-management\/\">\n        Supply Chain Management      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/treasury-management-systems-software\/\">\n        Treasury Management Systems      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/e2604e86d70b44f6536f59fbd9c740bb?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Robin Abrams<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"\">\n              <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=847\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-medium is-resized\"><img decoding=\"async\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-300x199.jpeg\" alt=\"\" class=\"wp-image-109152\" width=\"320\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-300x199.jpeg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-1024x678.jpeg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-768x509.jpeg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-285x190.jpeg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-320x212.jpeg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-370x245.jpeg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-414x274.jpeg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-453x300.jpeg 453w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-302x200.jpeg 302w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-377x250.jpeg 377w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-245x162.jpeg 245w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-240x159.jpeg 240w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6-186x123.jpeg 186w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/BIP-6.jpeg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n\n<p><\/p>\n\n\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-content\">Content<\/h3>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"h-what-is-financial-supply-chain-management\">What is Financial Supply Chain Management?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Supply chain management is a broad area of study which encompasses all managerial operations relating to the \u2018supply chain\u2019 \u2013 the flow of goods and services between a buyer and a supplier.<\/p>\n\n\n\n<p style=\"font-size:16px\">Within the treasury, supply chain management refers to all financial decisions regarding this supply chain. This is also known as \u2018financial supply chain management\u2019.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<p style=\"font-size:16px\">Financial supply chain management is an important function of the treasury which is responsible for things such as:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\">Reducing costs at all points within the chain<\/li>\n\n\n\n<li style=\"font-size:16px\">Increasing the efficiency of all points within the chain<\/li>\n\n\n\n<li style=\"font-size:16px\">Collaborating with all other parties in the chain more effectively<\/li>\n\n\n\n<li style=\"font-size:16px\">Releasing working capital in the supply chain<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Of these responsibilities, there is a particular onus on freeing up working capital, as recent studies have estimated that, in Europe alone, there could be as much as&nbsp;<a href=\"https:\/\/www.pwc.com\/gx\/en\/services\/advisory\/deals\/business-recovery-restructuring\/working-capital-opportunity.html\">\u20ac500 million of working capital locked up<\/a>&nbsp;in the financial supply chain.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-financing-the-supply-chain\">Financing the Supply Chain<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">It may be possible for businesses to unlock some of this trapped working capital by making sensible financing decisions.<\/p>\n\n\n\n<p style=\"font-size:16px\">The most basic and general definition of supply chain financing is the use of one of several financing options to make payments between buyers and suppliers better for one or both parties.<\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/www.tradefinanceglobal.com\/supply-chain-finance\/\">Supply chain finance<\/a>&nbsp;is also commonly referred to as \u2018trade finance\u2019.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-trade-finance-uses-at-different-points-in-the-supply-chain\">Trade Finance Uses at Different Points in the Supply Chain<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Below is a graph illustrating how trade financing can assist both buyers and suppliers at any phase of the supply chain:<\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"541\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2018\/09\/FinancingINfsc-v1-0%D9%A1-1024x577.jpg\" alt=\"Supply Chain graphic\"><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-trade-finance-solutions\">Types of Trade Finance Solutions<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">As mentioned above, there are several types of financing solutions available which businesses can utilise to improve their supply chain processes.<\/p>\n\n\n\n<p style=\"font-size:16px\">We can split these into two main categories: buyer-centric financing solutions and supplier-centric financing solutions. The former being financing initiated by request of the supplier and the latter being financing initiated by request the buyer.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<p style=\"font-size:16px\">Types of Supplier-Centric Financing Solutions<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Inventory financing<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">This refers to a type of lending whereby inventory stock is used as collateral against a line of credit to secure more favourable credit terms.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Factoring \/ Receivables finance<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">Factoring is a way of obtaining finance in which a supplier sells their&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/finance-products\/accounts-receivables-finance\/\">accounts receivables<\/a>&nbsp;to a third-party at a discounted price to obtain immediate working capital.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Pre-shipment financing<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">Pre-shipment financing is when a supplier takes out a loan from a third-party finance provider before they export the goods to the buyer. It\u2019s usually needed to source product components or fund manufacturing costs.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Post-shipment financing<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">This refers to any loan which is taken out after goods have been shipped. It\u2019s an advance given against the shipment to improve working capital.<\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"h-types-of-buyer-centric-financing-solutions\">Types of Buyer-Centric Financing Solutions<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Distributor finance programmes<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">Any financing solution which helps to ensure that a distributor can purchase goods from the exporter.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Payables finance<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">A finance solution that covers the time period between when a buyer makes a payment obligation and the time when that payment is received.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Reverse factoring<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">A buyer-initiated version of regular factoring, whereby the supplier gets access to the early payment of the receivable at a better cost due to the buyer\u2019s better commercial credit rating.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<p style=\"font-size:16px\">The last of these solutions \u2013 reverse factoring \u2013 is also often referred to as supply chain finance. We\u2019ll talk about this in more detail below.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-supply-chain-finance-reverse-factoring\">Supply Chain Finance \/ Reverse Factoring<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">In regular factoring, a supplier will sell its accounts receivable to a factoring company directly. In supply chain finance, the buyer functions as an intermediary in this process to help its supplier gain more favourable terms.<\/p>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n\n<p style=\"font-size:16px\">To do this, the buyer \u2013 not the supplier \u2013 will initiate a reverse factoring agreement with a company offering supply chain finance. This company will then finance an early payment of the supplier\u2019s accounts receivable in exchange for a small fee, and collect these funds back from the buyer once the invoice matures.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-supply-chain-finance\">Advantages of Supply Chain Finance<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Utilising supply chain finance is a win-win situation which benefits both the supplier and the buyer.<\/p>\n\n\n\n<p style=\"font-size:16px\">If the buyer is a larger corporation, they will typically have a higher commercial credit rating and, as such, can secure finance at a lower cost than the supplier.<\/p>\n\n\n\n<p style=\"font-size:16px\">From the supplier\u2019s perspective, the advantage of this is that they can better manage their cash flow and access liquid working capital quickly and at a lower cost than through regular factoring on account of the buyer\u2019s better credit rating.<\/p>\n\n\n\n<p style=\"font-size:16px\">From the buyer\u2019s perspective, the advantages are that their supply chain is more resilient as they have helped their suppliers achieve more financial security and thus minimised the risk of losing a key supplier. They can also potentially achieve better terms and improve buyer-supplier relations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">References:<\/h2>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/www.pwc.com.au\/publications\/pdf\/supply-chain-finance-jul17.pdf\">https:\/\/www.pwc.com.au\/publications\/pdf\/supply-chain-finance-jul17.pdf<\/a><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/ctmfile.com\/sections\/background\/trade-finance\">https:\/\/ctmfile.com\/sections\/background\/trade-finance<\/a><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/www.comcapfactoring.com\/blog\/how-does-supplier-financing-work\/\">https:\/\/www.comcapfactoring.com\/blog\/how-does-supplier-financing-work\/<\/a><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Supply_chain_management\">https:\/\/en.wikipedia.org\/wiki\/Supply_chain_management<\/a><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/treasurytoday.com\/2007\/01\/introductionf-to-financial-supply-chain-management\">https:\/\/treasurytoday.com\/2007\/01\/introductionf-to-financial-supply-chain-management<\/a><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/www.libf.ac.uk\/news-and-insights\/news\/detail\/2016\/11\/15\/back-to-basics-the-benefits-of-supply-chain-finance\">https:\/\/www.libf.ac.uk\/news-and-insights\/news\/detail\/2016\/11\/15\/back-to-basics-the-benefits-of-supply-chain-finance<\/a><\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Content What is Financial Supply Chain Management? Supply chain management is a broad area of study which encompasses all managerial operations relating to the \u2018supply chain\u2019 \u2013 the flow of\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/trade-financial-supply-chain-management\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":84,"featured_media":113030,"parent":14584,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[],"class_list":["post-14616","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trade Financial Supply Chain Management | 2025 Trade Finance Global Treasury Management Hub<\/title>\n<meta name=\"description\" content=\"[UPDATED 2025] Supply chain management is a broad area of study which encompasses all managerial operations relating to the \u2018supply chain\u2019 - the flow of goods and services between a buyer and a supplier. 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