Small and medium-sized enterprises (SMEs) deeper in the supply chain often find themselves with many financial challenges. They are several layers away from giant focal companies like Unilever, Siemens, and Dell that can provide supply chain financing. Until now, all support programs that focal companies have provided, such as reverse factoring and dynamic discounting, were only available to their first-tier suppliers.
How Fintech Is Making Smaller Suppliers More Resilient
Digital platforms make it easier to manage cash flows and enhance business operations.
October 04, 2023
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Summary.
Historically, smaller, lower-tier suppliers have had trouble obtaining financing. New fintech platforms are changing that. They are making it easier for them to use assets such as approved invoices, inventories, and purchase orders to access financing from outside investors or focal companies.