Article Preview
TopOverview Of Supply Chain Finance Assisting Small And Medium-Sized Enterprises In Financing
Supply chain finance (SCF) aims to increase the overall creditworthiness of the supply chain, encompassing consumers, providers, and finance companies, through an inter-organizational strategy. In the SCF, enterprises will work to improve effective collaboration (Gao et al.2020). Supply chain finance is a set of technology-enabled business and finance procedures that save time and money for all companies participating in a transaction(Sharma et al.2021). For both consumers and sellers, cash flow optimization is facilitated by supply chain finance, which decreases the chances of supply chain disruption. Reverse factoring is another name for it (Amudha et al.2021). Capital budgeting, capital structure, and working capital management are all subcategories of corporate finance. Personal Finance, Corporate Finance, and public finance fall under this umbrella term. Private finance is the foundation of all financial activity(Abdel-Basset et al.2018).
Financing works well when the buyer’s credit score is greater than the supplier’s since the consumer can get capital at a lower interest rate (Suifan et al.2019). Due to global industrial and financial incorporation, supply chain finance has evolved to provide business financial services for input and output enterprises in the industry supply chain to achieve rapid expansion (Abd El-Latif et al.2020). Banking is a form of financing with roots in the real-world industrial network(hote et al.2019). It’s one- service that brings supply chain and finance together, and it’s an important aspect of putting a supply chain strategy in place (Chen et al.2021). A macro-financial model based on an industrial distribution network is at the heart of supply chain finance (Huang et al.2021). Connecting and analyzing knowledge assets in the industrial supply chain, such as data flow (Tong et al.2021), logistics, and business flow, can reduce the cost of communication between financial firms (Olan et al.2021).