What is Supply Chain Financing?
Supply chain financing is a type of alternate financing which finances the working capital of parties involved in B2B transactions on the basis of linking documents such as invoice. Typically, Supply chain Finance works where Anchor Corporate has better credit rating than its Suppliers or Dealers as he can get better credit terms from Financiers.
Supply Chain includes the entire value chain which means the processes on Purchase side and Sales side both and each side of the value chain need lot of efficiency in processes and better financing alternatives which are catered through Supply Chain Financing & other automated solutions for process efficiency.
Vendor Bill Discounting, Reverse Factoring, Supplier Financing, Dealer Financing are some variants of Supply Chain financing which are generally used.
A typical variant can be implemented for the party of any supply chain process basis their need, their counterparty rating and involvement and efficient processes.
Traditional Supply Chain finance includes a lot of paperwork and usually access to a single financier at one point of time which makes it less flexible and less oriented to better price discovery. RAMSUN Network helps here by bringing cutting edge innovative technology in place to make the process seamless and providing access to multiple financiers with no effort.
- Optimize working capital
- Reduced Cost of Goods and enhanced bottom line
- Process efficiency due to automation of process
- Better Cash flow and optimization of excess cash
- Uninterrupted supply from Critical Suppliers by timely payment without pressure on Working Capital
- Off balance sheet
- Early Payment availability without taking loans
- Reduced Cost of Capital by leveraging the Buyer’s credit rating
- Access to multiple Financial institution at one place
- With and Without recourse finance models
- Better Cash flow management
- Better Working Capital solutions for advance payment to purchase inventory
- Better liquidity by freeing cash blocked in inventory
- Reduced Operational cost due to automation
- Better price discovery by access to multiple Financiers
- Good platform to build quality asset portfolio and revenue
- Cross Sell opportunities
- KYC Support
- Reduced marketing and client acquisition cost along with improved reach to build clientele
- Facility to make better decision making through key information availability by use of AI & other analytics based data points
What RAMSUN Network offers?
- RAMSUN Network provides unique solution by seamless one-time integration, no further integration needed for other solutions or to connect to counterparty’s ERP
- Expert Team to implement the right solution for you. Flexible models available basis the requirement of Buyers and their Suppliers
- Artificial Intelligence enabled solution for credit score, Pattern analysis, predictive analysis resulting in better authentication of transaction
- Holistic automated solution when combined with RAMSUN Supplier Management Tool & RAMSUN Receivable Management Tool and facilitates the entire cycle from Invoicing to Financing
- Reconciliation tasks made easier through digital platform
- Easily adaptable Supply Chain Finance Solutions and easily changeable products basis need