How to Draw Value from Your Supply Chain Finance Program

There are many advantages to unlocking both flexibility and control within your organization. To have control or at least to feel in control is to have peace of mind and satisfaction. Two things you can't put a price on. And to have flexibility is to have the freedom to make choices that are not tied or bound to any one person or thing. In the workplace, these capabilities are usually in short supply; although, that doesn't have to be the case.


With supply chain finance, what you are really getting is just that: flexibility and control. Prior to the wave of Fintech innovators disrupting the financial services landscape, supply chain finance was seen as a resource made available only to big businesses that had good relationships with their banks. Today, supply chain finance enables a variety of businesses to unlock working capital in the supply chain and maximise resilience. There is no one reason why a company chooses to access supply chain finance solutions. It could be to many things such as to mend cash flow gaps during a cash flow squeeze, to cover a time of fall in demand, to improve the overall health of the supply chain, or to aid business suppliers. Whatever it may be, increasing access to alternative financing solutions is always a good bet to future proof the supply chain and prepare for unanticipated disruptions.


When subscribing to supply chain finance services, it's absolutely key to first identify what your companies' goals and intended outcomes are. A credit line without a plan is a recipe for disaster. The more clear your program objectives are, the more likely you are to maintain momentum throughout the supply chain and continue to reap the program benefits. Your goals must be in alignment with your intended best outcomes in order to ensure the most effective path to success. The next step would be to assign a team to the manage the supply chain finance solution. This team will be responsible for identifying the amount of funding needed, selecting the funding providers, identifying funding application goals, anticipating which suppliers will utilize and benefit from the program offering, and implementing and executing the program. The process of onboarding with external service providers can be perceived as painstaking; however, at TradeRiver, once we have agreed to the facility limit, a personalised login gives you access to our award-winning online platform. This allows you to introduce your chosen suppliers and confirm terms with them. Making secure domestic and international payments with your suppliers receiving funds in the currency of their choice within just 24 hours. The most successful programs assure the full length of the supply chain is working towards one common goal. There will be pivots and adjustments made to the program to make sure that all operating business processes are in alignment with the identified goals in order to meet intended objectives. This step requires your business to improve and build trust with your supplier relations so that you can effectively manage any wrinkles in the program while ironing out any program changes or tweaks. Adopting a supply chain finance solution can be a front heavy project. The implementation process requires some leg work, but once things return to a normal cadence; it's advantageous for users to always be brainstorming new and creative ways to draw more value out of the program. Discover opportunities to reinforce the program's value to continue driving success. At TradeRiver, clients can choose to use the extra cash flow for negotiation power, to fund confirmed sales, speculative stock, regular orders or even services it’s up to you. So, as well as paying for raw materials, parts and finished goods clients can do so much more!


At TradeRiver, we offer a true revolving credit facility where clients can use it, repay it, and use it again and again at their disposal. Our supply chain funding finance solutions are created to ease your cash flow pressures with up to 150 days additional credit. We provide a truly cross border solution for clients to use it to fund payments to suppliers anywhere in the world funding the payments they want to – raw materials, parts, finished goods or services. It's not complex: Additional cash flow without putting up extra security. Don't worry, theres no need to for you to change your bank – it works alongside existing bank facilities Get in touch here.

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