A/P Series Part 1: What is Supply Chain Financing?

by Feb 7, 2019A/P Series, Supply Chain Finance

According to investopedia.com, “Supply Chain Finance (SCF) is a set of technology-based business and financing processes that link the various parties in a transaction — buyer, seller and financing institution — in order to lower financing costs and improve business efficiency. Supply chain finance provides short-term credit that optimizes working capital for both the buyer and the seller.”

While that definition is fine, it does not explain why SCF is gaining such tremendous popularity by banks, lenders and companies. Of course, lowering financing costs and improving business efficiency would be attractive to any business – but lenders and their clients are realizing so many more benefits and advantages with SCF. Banks and lenders are generating new fee income by offering a product their clients find reduces cost of capital and extends the A/P cycle. With SCF, companies are transforming their A/P department – saving time and money.  

As a bank or lender, your clients and potential clients often overlook A/P in terms of optimizing their working capital. By offering your clients an ArtisPay SCF program, you can bring multiple strategic A/P elements to your client’s businesses, which will further solidify your relationship with them. SCF will do wonders for your clients’ A/P, their business and their business relationships.

Over the next few weeks I will be highlighting some strategic components that an ArtisPay SCF program brings to your clients. Follow me to see why more and more banks and lenders are choosing ArtisPay to offer to their clients and to attract new clients. See why these clients are quickly adopting ArtisPay into their A/P function, and why it is clear there is a ready market for ArtisPay and SCF.

For more information, contact the Artis Trade team via email at admin@artistrade.net.