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Follow on Google News | What is the supply chain finance?By: 1 Click Capital In contrast to traditional receivables finance strategies like factoring, supply chain finance is formed by the buyer rather than the provider. Another important difference is that suppliers can get supply chain financing at a funding cost depending on the credit rating of the customer rather than their own. Because of this, suppliers usually get access to supply chain financing at a lower cost than they otherwise would. The buyer will first execute a contract with a provider of supply chain financing, and then it will persuade its suppliers to enroll in the scheme. While some supply chain finance programmes are managed by technology professionals using a dedicated platform on a multi-funder basis, other programmes are managed by a single bank or finance provider. Instead of focusing on onboarding their 20 or 50 top suppliers, businesses may now offer supply chain finance to hundreds of thousands or even tens of thousands of suppliers thanks to technology-driven solutions. This is made possible by providing simple-to-use platforms and effective supplier onboarding methods that make it easy to rapidly and easily enroll numerous vendors. Supply chain financing procedure 1. The buyer buys products or services from the supplier. 2. The supplier sends the buyer an invoice, which must be paid within a certain amount of time (e.g., 30 days, 60 days, or 90 days) 3. The client agrees to pay the invoice. 4. The supplier requests early payment on the invoice. 5. The purchaser pays the funder by the due date on the invoice. 6. After subtracting a little fee, the funder transfers funds to the supplier. To read more blogs, visit|: https://blog.1clickcapital.com/ End
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