Supply chain finance

Abstract

Supply channel financing or reverse factoring can be defined as the use of financial instruments and technologies to optimize the management of working capital and liquidity, which are linked to the supply chain. This type of transaction includes the following participants: the supplier, the buyer and the factor as an intermediary. Given the available expertise, professionally trained staff, structured experience, technical equipment and some other functionalities, banks are, as factors, ideal participants in supply chain financing. The support provided by international financial institutions, some of which will be mentioned more specifically in the following text, can be a valuable opportunity to improve existing models, and to initiate new projects and install appropriate platforms, which would certainly benefit both clients and the banks themselves.