TLDR
Supply chain finance is one of the concepts countering conflicting interests arising from buyers’ traits of extending their payment terms and suppliers’ desire to receive payment instantly. This model mitigates the risks involved in the financing of the increasingly digitized global supply chains by enabling adequate working capital and providing the appropriate liquidity. As such, a supplier, with approved invoices, can receive the full amount owed by sourcing for funds from financial institutions. In turn, the financiers can provide extensions on the payables depending on the credit-worthiness of the buyer in question.via the TL;DR App
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