Supply chain finance (SCF) is a short-term working capital finance that are availed by the dealers or suppliers having good business relationships with other enterprises and looking for a supply chain finance in India working requirements.

1. Supply Chain Finance in India
Supply chain finance (SCF) is a short-term working capital finance that are availed
by the dealers or suppliers having good business relationships with other enterprises
and looking for a supply chain finance in India working requirements.
In this process, an enterprise gets its supplier’s payments financed by an external
financier. However, supply chain financing is a mixture of different financial
instruments which shall include bill discounting and overdraft facilities that majorly
focus to optimize the capital and enhance user flexibility.
Some common instruments of Supply Chain Finance
Reverse Factoring: This method allows the sellers to sell their drafts, approved by
the buyer, to a bank at a discounted price.
Inventory finance: The seller is allowed to hold the goods, reserved for the buyer, in
a warehouse till the time goods are requested to be delivered.
Purchase order: This is an instrument or an order available to the seller for the
order placed by the buyer.

2. Small medium enterprises are mostly prefer using supply chain finance for their
short-term capital needs.
In most recent times, various supply chain finance companies emerged in India
with the objective of providing services to more than 40,000 small business
enterprises in India. This allows SMEs to get instant credit and experience a
seamless process.
Features of Supply Chain Finance
● Easy and faster way to secure working capital finance
● Benefits both the buyer and the supplier to meet their needs
● Biggest beneficiaries are the MSMEs
● Techno-business solutions are in place to manage the flow of working capital
needs
● Individual Supply Chain Units to finance online as well as offline supply chain
partners
● Process of raising invoice is online so that the borrower can avail credit
immediately