Supply Chain Finance Offering New Cash Source Companies - Loan Trivia


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Friday 5 October 2018

Supply Chain Finance Offering New Cash Source Companies

It has been seen that irrespective of the size of the business, many finance officers and accountants face the hassle of not finding adequate funding for their business. There are many ongoing potential projects that needs funding and although equity and debt are conveniently available to major companies, they are time consuming as well. reduction of selling assets or capital investment could also be a solution but can hinder stable cash flow.

A Supply chain finance or SCF allows a company to access the unutilized funds stuck in the various rungs of the supply chain. It thus helps in increasing the working capital and enhances the overall production and turnover as well. In fact, this is becoming a key tool when it comes to preventing the company from suffering a burnout due to lack of funds. A CFO or Chief Financing Officer could get the funds by decreasing the sum of payables, increasing the receivables and by reducing the stacking of excess inventory. This creates a win win situation for all because it works by increasing the payment terms and also helps the supplier in receiving early payments. Accessing funds has become quite convenient because of the reliable companies like Baja Finserv, which have pre- approved offers in place for such financing. Once everyone gets the due from the supply chain, any credit taken during the period could be easily paid off later.

Moreover, thanks to technology, supply chain finance has become even easier. It has increased the effectiveness and the efficiency of the system. Initially only the top suppliers were a part of the chain but now it has become possible for all the participants to be a part of the chain and reap its benefits. Since source financing options are finding crowd platform and the presence of comprehensive analytics has largely increased in scope, even small businessmen are eager to know about it and use it to their advantage. SME and MSME loans are not hard to find as well. Bajaj Finserv offers business loans up to Rs. 30 lakh with exciting pre-approved offers and low rates of interest. Only a couple of documents are required to avail of this loan. Apply today!

Also Read: How supply chain finance offering new cash source companies

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