What are the advantages of supply chain finance and why is it better than factoring? How can a bank learn more inside information about a corporations strategic operations so that it can be made a contributor to the model for corporate business?
Even though supply chain finance or SCF has been given the status of a product category which is fully-fledged a lot of banks and other financial institutions still have a very long way to go in order to set a standard for the procedures related to supply chain finance and the way it is handled.
For example, lately there has been some confusion related to the use of the term reverse factoring when it comes to supply chain finance. For the financial institutions which run both financial operations and the more contemporary banking divisions this dispute related to simple terminology is not trivial at all.
When it comes to very high levels, the form of supply chain finance which is most common is the financing of certain Continue reading “Supply Chain Finance Versus Factoring”