How Supply Chain Finance Preserves Liquidity and Strengthens Supplier Relationships
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While headline growth remained soft, the US economy showed signs of underlying strength in the first half of 2025. July’s S&P Global’s flash US Composite PMI, an early economic indicator of the private sector economy, rose to 54.6, its highest reading since December. This growth was driven by strong consumer spending, robust services activity, and tariff-related inventory front-loading.
However, construction and manufacturing saw declines as rising input costs and weaker new orders weighed on production. Other supply chain–dependent industries experienced mixed results: the smartphone and electronics sectors reported negative growth, while brands in the auto industry achieved 7% sales growth.
As new trade agreements emerge and front-loaded inventories unwind, the second half of the year will bring fresh challenges. Cost structures, planning strategies and supplier relationships will face additional pressure. Yet opportunities remain for businesses that can adapt quickly, preserve liquidity, and maintain operational resilience.
Forward-thinking companies are already taking steps to optimize cash flow and build efficiency into their future-proofing strategies. Many are turning to flexible financing solutions that free up working capital, without adding debt or diluting equity.
Supply chain financing (SCF) is a specialized financing solution designed to strengthen stability throughout supply networks. By providing guaranteed payments (both automatically based on rules or on demand) to suppliers while extending payment terms for buyers, supply chain finance helps both parties improve liquidity, maintain continuity, and support growth.
Understanding how supply chain finance works allows partners to discuss potential opportunities with clients, helping them manage cash flow and supplier relationships effectively.
This article examines the growing pressure on global supply chains and how supply chain finance can help businesses preserve liquidity and strengthen supplier relationships in 2025.
Increasing pressure on existing supply chains
Prior to 2025, many businesses adopted de‑risking strategies, such as dual sourcing, nearshoring, and maintaining buffer inventory, to protect against the residual effects of the global pandemic. But new stressors are once again testing supply chain resilience. Dynamic trade negotiations, shifting economic conditions, and geopolitical instability are intensifying the strain on established supply chains.
Key pressure points include:
To remain resilient, companies need to monitor conditions closely, strengthen forecasting, and maintain financial flexibility to respond quickly when disruptions occur.
Future-proofing supply chains
Beyond tariffs and shipping delays, 2025 has brought new layers of complexity to global supply chains. Companies must prepare for further complexities that could disrupt operations and strain resources.
Key challenges to watch in the second half of 2025 include:
- Scenario fatigue and delayed decision-making: Ongoing uncertainty and cash flow pressures hinder strategic planning and decision-making. This often results in missed opportunities to invest in resilience and strengthening a business’s ability to anticipate, absorb, adapt to, and recover from disruptions.
- Raw material constraints and energy cost spikes: Persistent materials shortages, high energy prices, and volatile commodity markets continue to tighten resource availability and increase costs.
- Workforce automation and reskilling gaps: Labor shortages, outdated legacy systems, and reskilling needs are slowing adoption of digital tools and automation.
- Climate and sourcing risks: Extreme weather and sourcing instability in critical mineral supply chains (e.g. cobalt, nickel) add further operational pressures.
For many companies, these risks are further intensified by limited financial capacity. The lack of accessible working capital often forces many businesses to react rather than plan proactively.
Proactive strategies to optimize cash flow
Access to capital is one of the biggest barriers to building supply chain resilience. For example, in the aerospace industry, nearly half of the firms cited insufficient capital as a key constraint to building supply chain readiness.
To stay ahead, forward-thinking companies are combining operational strategies with financial innovation. As digital transformation accelerates, many are adopting financing tools like supply chain finance to quickly and efficiently free up working capital, The result: less financial strain, improved liquidity, and more strategic use of working capital for production, inventory, and growth.
Partners can highlight these benefits to clients when discussing ways to strengthen supply chain resilience, showing value through strategic guidance.
Leading specialty lenders, experienced in supply chain finance, are continuously advancing fintech-driven platforms to deliver faster access to liquidity. The speed of funding is catching up to the speed of digital operations, helping reduce financial constraints, enhance liquidity, and improve financial stability. This allows businesses to allocate resources more efficiently, optimize production processes, and strengthen overall operational performance.
Supply chain finance is now at the forefront of fast funding and near real‑time payment settlement – transactions that once took days can now clear in hours.
SCF is a leading-edge financing solution
Supply chain finance is a financing solution in which a third‑party funder pays supplier invoices on demand and on time while providing buyers with extended payment terms. This strengthens liquidity and relationships across the supply chain.
Supply chain finance was once limited to CFOs and procurement teams. Today, supply chain finance is a critical tool for addressing global business challenges. It keeps working capital flowing efficiently through supply networks and ensures suppliers get paid when they need to, to keep operations running.
Partners can use this understanding to guide clients toward solutions that improve cash flow, strengthen supplier relationships, and reduce operational risk.
Here’s how it works:
- Enrollment: Qualification is quick and easy with minimal paperwork. Whether you are a buyer or a supplier, the process of onboarding is minimal.
- Funding: Once accounts are set up, funding and payment transfers can be processed as soon as invoices are submitted and verified.
- Sellers receive guaranteed payment on approved invoices (whether in advance should they desire or on time). This provides easy access to capital without incurring debt.
- Buyers can benefit from extended payment terms, often up to 120 days (via supplier or buyer funded methods). This helps strengthen supplier relationships while improving working capital.
- Visibility and Control: Users can view insights on transactions, account balances, and credit limits, as well as generate reports quickly and easily through a secure online account management portal.
Today, supply chain finance programs operate in more than 48 countries and support over two million suppliers globally. Its rapid adoption reflects its value in helping businesses remain agile despite growing supply chain complexity.
Conclusion
As the economy heads into the second half of the year, uneven growth, shifting trade agreements, volatile costs will continue to challenge supply chains.
For many companies, limited access to working capital often magnifies these challenges, resulting in production delays, inventory shortages, and strained vendor relationships.
Yet within the turbulence lies opportunity. Companies that proactively manage capital, embrace financial innovation, and build adaptive supply chains will be best positioned to emerge stronger in a shifting global economy. The speed in which businesses can transform their supply chains, financially and operationally, may determine their competitive advantage in 2026 and beyond.
Partners who understand supply chain finance can play a critical role in helping clients identify opportunities, access solutions, and strengthen their own client relationships.
Contact us to learn how supply chain finance can free up working capital, strengthen supplier relationships, and help your business thrive amongst changing conditions.
Key Takeaways
- New trade agreements, rising costs, and shifting demand are putting supply chains under increasing pressure.
- Cash flow constraints often magnify these challenges, forcing businesses to react than plan strategically. For supply chains, this can mean production delays, inventory shortages, and strained vendor relationships.
- Yet, opportunities remain for firms that can navigate these complexities and maintain financial health.
- Supply chain finance accelerates funding to align with the speed of digital data. This helps to reduce financial constraints, enhance liquidity, and promote stability for both suppliers and buyers.
- Partners can leverage supply chain finance to support clients with timely introductions and strategic financial guidance.
- Businesses are increasingly turning to supply chain finance to unlock working capital without taking on debt or diluting equity.
ABOUT eCapital
At eCapital, we accelerate business growth by delivering fast, flexible access to capital through cutting-edge technology and deep industry insight.
Across North America and the U.K., we’ve redefined how small and medium-sized businesses access funding—eliminating friction, speeding approvals, and empowering clients with access to the capital they need to move forward. With the capacity to fund facilities from $5 million to $250 million, we support a wide range of business needs at every stage.
With a powerful blend of innovation, scalability, and personalized service, we’re not just a funding provider, we’re a strategic partner built for what’s next.
David Leonard
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MY BIOGRAPHY
[/vc_column_text][vc_column_text css="" text_direction="default"]David Leonard is Vice President of Supply Chain Finance at eCapital, where he leads the development and delivery of tailored working capital solutions for mid-size and large enterprises.
He brings more than 20 years of experience in AP/AR automation with deep subject matter expertise in invoice and payments processing. Known for his ability to listen and understand client needs, David builds strong partnerships that are grounded in trust and long-term value.
David leans on his expertise in financial automation to help businesses improve liquidity, optimize working capital, and strengthen supplier relationships through tailored Supply Chain Finance solutions.
He holds a Bachelor of Science in Mathematics Education from Florida State University.[/vc_column_text][/vc_column][vc_column column_padding="padding-2-percent" column_padding_tablet="inherit" column_padding_phone="inherit" column_padding_position="all" column_element_direction_desktop="default" column_element_spacing="default" desktop_text_alignment="default" tablet_text_alignment="default" phone_text_alignment="default" background_color_opacity="1" background_hover_color_opacity="1" column_backdrop_filter="none" column_shadow="none" column_border_radius="none" column_link_target="_self" column_position="default" gradient_direction="left_to_right" overlay_strength="0.3" width="1/2" tablet_width_inherit="default" animation_type="default" bg_image_animation="none" border_type="simple" column_border_width="none" column_border_style="solid"][divider line_type="No Line" custom_height="10px"][text-with-icon icon_type="font_icon" icon="fa fa-industry" color="Extra-Color-2"]INDUSTRIES
Manufacturing
Distribution
Retail
Healthcare[/text-with-icon][divider line_type="No Line" custom_height="10px"][divider line_type="Full Width Line" line_thickness="2" divider_color="extra-color-gradient-1" animate="yes" custom_height="20px"][divider line_type="No Line" custom_height="10px"][text-with-icon icon_type="font_icon" icon="fa fa-diamond" color="Extra-Color-2"]SPECIALTIES
Supply Chain Finance[/text-with-icon][divider line_type="No Line" custom_height="10px"][divider line_type="Full Width Line" line_thickness="2" divider_color="extra-color-gradient-1" animate="yes" custom_height="20px"][divider line_type="No Line" custom_height="10px"][text-with-icon icon_type="font_icon" icon="fa fa-map-signs" color="Extra-Color-2"]COVERAGE
Nationwide[/text-with-icon][divider line_type="No Line" custom_height="10px"][divider line_type="Full Width Line" line_thickness="2" divider_color="extra-color-gradient-1" animate="yes" custom_height="20px"][divider line_type="No Line" custom_height="10px"][text-with-icon icon_type="font_icon" icon="fa fa-history" color="Extra-Color-2"]EXPERIENCE
20+ Years[/text-with-icon][/vc_column][/vc_row][vc_row type="full_width_background" full_screen_row_position="middle" column_margin="default" equal_height="yes" content_placement="top" column_direction="default" column_direction_tablet="default" column_direction_phone="default" scene_position="center" text_color="dark" text_align="left" row_border_radius="none" row_border_radius_applies="bg" overflow="visible" overlay_strength="0.3" gradient_direction="left_to_right" shape_divider_position="bottom" bg_image_animation="none" shape_type="" gradient_type="default"][vc_column column_padding="padding-2-percent" column_padding_tablet="inherit" column_padding_phone="inherit" column_padding_position="all" column_element_direction_desktop="default" column_element_spacing="default" desktop_text_alignment="default" tablet_text_alignment="default" phone_text_alignment="default" background_color_opacity="1" background_hover_color_opacity="1" column_backdrop_filter="none" column_shadow="none" column_border_radius="none" column_link_target="_self" column_position="default" gradient_direction="left_to_right" overlay_strength="0.3" width="1/2" tablet_width_inherit="default" animation_type="default" bg_image_animation="none" border_type="simple" column_border_width="none" column_border_style="solid"][vc_column_text]
MEET & GREET OPPORTUNITIES
Let's connect at these upcoming events:[/vc_column_text][vc_column_text css="" text_direction="default"][event_list][/vc_column_text][/vc_column][vc_column column_padding="padding-2-percent" column_padding_tablet="inherit" column_padding_phone="inherit" column_padding_position="all" column_element_direction_desktop="default" column_element_spacing="default" desktop_text_alignment="default" tablet_text_alignment="default" phone_text_alignment="default" background_color_opacity="1" background_hover_color_opacity="1" column_backdrop_filter="none" column_shadow="none" column_border_radius="none" column_link_target="_self" column_position="default" gradient_direction="left_to_right" overlay_strength="0.3" width="1/2" tablet_width_inherit="default" animation_type="default" bg_image_animation="none" border_type="simple" column_border_width="none" column_border_style="solid"][image_with_animation image_url="34184" image_size="full" animation_type="entrance" animation="None" animation_movement_type="transform_y" hover_animation="none" alignment="" border_radius="none" box_shadow="none" image_loading="default" max_width="100%" max_width_mobile="default"][/vc_column][/vc_row][vc_row type="in_container" full_screen_row_position="middle" column_margin="default" column_direction="default" column_direction_tablet="default" column_direction_phone="default" scene_position="center" top_padding="2%" bottom_padding="2%" text_color="dark" text_align="left" row_border_radius="none" row_border_radius_applies="bg" overflow="visible" class="no-margin no-padding" disable_element="yes" overlay_strength="0.3" gradient_direction="left_to_right" shape_divider_position="bottom" bg_image_animation="none" shape_type="" gradient_type="default"][vc_column column_padding="padding-2-percent" column_padding_tablet="inherit" column_padding_phone="inherit" column_padding_position="top-bottom" column_element_direction_desktop="default" column_element_spacing="default" desktop_text_alignment="default" tablet_text_alignment="default" phone_text_alignment="default" background_color_opacity="1" background_hover_color_opacity="1" column_backdrop_filter="none" column_shadow="none" column_border_radius="none" column_link_target="_self" column_position="default" el_class="no-padding" gradient_direction="left_to_right" overlay_strength="0.3" width="1/1" tablet_width_inherit="default" animation_type="default" bg_image_animation="none" border_type="simple" column_border_width="none" column_border_style="solid"][vc_column_text]
RECENT TRANSACTIONS
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PROFESSIONAL ASSOCIATIONS
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SECURED FINANCE NETWORK
www.sfnet.com
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TURNAROUND MANAGEMENT ASSOCIATION
www.turnaround.org
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MY INDUSTRY INSIGHTS
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DAVID LEONARD
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VP, Supply Chain Finance
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OFFICE
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INTERESTS
Family
Travel
Hiking, Canyoneering, Climbing
Pickleball[/text-with-icon][/vc_column][vc_column column_padding="padding-2-percent" column_padding_tablet="inherit" column_padding_phone="inherit" column_padding_position="all" column_element_direction_desktop="default" column_element_spacing="default" desktop_text_alignment="default" tablet_text_alignment="default" phone_text_alignment="default" background_color_opacity="1" background_hover_color_opacity="1" column_backdrop_filter="none" column_shadow="none" column_border_radius="none" column_link_target="_self" column_position="default" gradient_direction="left_to_right" overlay_strength="0.3" width="1/2" tablet_width_inherit="default" animation_type="default" bg_image_animation="none" border_type="simple" column_border_width="none" column_border_style="solid"][vc_column_text]
LET'S CONNECT
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