Definition of Financial supply chain

Definition of Financial supply chain

The financial supply chain is a set of technology-based company and funding processes that link the various parties in a deal like the customer, supplier, and funding institution.

Brief Explanation of Financial supply chain

It is used to lower funding costs and improved company performance. The growing popularity of SCF has been mostly driven by the increasing globalization and complexness of the provide sequence, especially in sectors such as an automobile, manufacturing, and the retail sector. It generally involves the use of a technological innovation system in order to improve dealings and track the bill acceptance and settlement process from start to finalization. Financial supply chain provides short-term credit that maximizes funds for both the customer and owner.

Its solutions vary from traditional provide chain programs to enhance funds, such as considering and payment discount rates, in two ways:

  • It encourages cooperation between the customer and supplier, rather than the competition that often pits customer against the supplier and the other way around.
  • It joins financial transactions to value as it flows through the provide sequence.



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