Overview of Supply Chain Finance

Supply chain finance works best when the buyer has a better credit rating than the seller, and can consequently source capital from a bank or other financial provider at a lower cost. This advantage lets buyers negotiate better terms from the seller, such as extended payment schedules. Meanwhile, the seller can unload its products more quickly, to receive immediate payment from the intermediary financing body.

Supply chain finance encourages collaboration between buyers and sellers. This philosophically counters the competitive dynamic that typically arises between these two parties. After all, under traditional circumstances, buyers attempt to delay payment, while sellers look to be paid as soon as possible. Supply chain finance has been primarily driven by the increasing globalization and complexity of the supply chain, especially in the automotive and manufacturing industries.

MoData offers you a comprehensive supply chain finance solution to manage the intricacies of complex flows, including factoring, reverse factoring, etc., while enabling seamless supplier and buyer-centric financing. By leveraging the automated solution, the seller enjoys the benefits of easy, fast financing of receivables at competitive rates, without recourse financing. The buyer receives the benefits of optimizing working capital. Additionally, you can minimize administration costs while drastically improving your organization’s operational efficiency.

Additionally MoData offers Blockchain-enabled Supply Chain Finance Solutions. Built on a low code digital automation platform, the solution provides you a secure way to manage the end-to-end process, from onboarding to final disbursal. By leveraging the solution, you can gain visibility, increase efficiencies, and minimize costs throughout the chain. Furthermore, it helps you adopt a collaborative approach toward other parties in the chain.