Supply Chain Finance is a buyer-led financing solution that allows suppliers to receive early payment on approved invoices, while the buyer extends their payment terms. It improves working capital for both parties and strengthens supply chain relationships.

Once a buyer approves a supplier’s invoice, a third-party funder (like a specialty lender or fintech platform) pays the supplier early—often within days. The buyer then repays the funder at the agreed-upon, extended due date. This creates a win-win: suppliers get paid faster, and buyers keep their cash longer.

• Extended payment terms without straining supplier relationships

• Improved cash flow and Days Payable Outstanding (DPO)

• Strengthened supplier loyalty and supply chain resilience

• Potential for supplier discounts through early payment options

• Faster access to cash, often within 1–3 days of invoice approval

• Improved liquidity without taking on debt

• Lower-cost financing based on the buyer’s credit, not their own

• Increased predictability in cash flow and payment cycles

SCF is ideal for mid-size to large buyers with strong credit and significant supplier networks, and for suppliers who want to access working capital quickly without borrowing against their own credit.

Not necessarily. SCF is designed to enhance—not disrupt—supplier relationships. Participation is usually voluntary for suppliers, and buyers can roll it out selectively across their vendor base.

For suppliers, SCF typically does not appear as debt since they’re receiving early payment for an approved invoice. For buyers, it’s often treated as a trade payable rather than financial debt, depending on how it’s structured and accounted for.