oboloo Glossary

Supply Chain Finance

oboloo Glossary

Supply Chain Finance

Supply Chain Finance (SCF) is a type of financial solution that helps companies manage cash flow by improving their ability to forecast and pay suppliers. It represents an arrangement between buyers, suppliers, and a financial institution that builds trust, improves supplier relationships, and increases efficiency in the supply chain. SCF allows buyers to extend payment terms to their suppliers, giving them more time to pay, while also allowing suppliers to more quickly access funds. Through this efficient process, cash flow can be improved, resulting in increased profitability and economic growth.