Supply Chain Finance (SCF)
- Loan Against PropertyLoan Against Property
- Home Loans
- Loan Against SecuritiesLoan Against Securities
- More Loans
SMFG India Credit’s Supply Chain Finance (SCF) financing solution is designed to help businesses optimise cash flow across their supply chains. It enables buyers and suppliers to manage working capital efficiently by ensuring timely payments, smoother operations, and stronger supplier relationships.
Additionally, businesses can unlock liquidity tied up in receivables or payables, ensuring uninterrupted production and distribution—especially during periods of high demand, extended payment cycles, or seasonal slowdowns.
Rather than funding long-term expansion or asset purchases, our SCF solutions focus on improving day-to-day cash flow across trading relationships, allowing both buyers and suppliers to operate with greater financial stability and flexibility.
What Is Supply Chain Finance?
Supply Chain Finance is a short-term financing solution that helps businesses manage operational cash flows arising from trade transactions. It facilitates suppliers with ease of early payments on invoices while allowing buyers to enjoy a credit period.
SCF is particularly beneficial for businesses dealing with large buyer–supplier ecosystems, long credit cycles, or seasonal sales patterns. Depending on the structure, Supply Chain Finance solutions may be secured by trade receivables and are typically driven by the credit strength of the corporate buyer.
Features & Benefits of Supply Chain Finance
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
FAQs
Who are the key participants in a Supply Chain Finance program?
An SCF program typically involves:
- Buyer: A corporate, PSU, or institution
- Supplier / Vendor / MSME: Entity supplying goods or services
- Financier: Bank / NBFC / regulated financial institution
- Technology Platform: Digital portal, ERP, TReDS (where applicable), etc.
How does Supply Chain Finance work in India?
1.The supplier raises an invoice on the buyer
2.The buyer approves the invoice
3.The supplier opts for early payment under the SCF program
4.The financier disburses funds to the supplier
5.The buyer pays the financier on the agreed-upon due date
The financing is linked to an underlying trade transaction.
What are the benefits of SCF for suppliers and MSMEs?
- Faster access to working capital
- Lower cost of funds due to buyer-linked risk assessment
- No additional collateral requirement
- Improved cash flow and business continuity
- Supports MSME liquidity in compliance with government initiatives
What are the benefits of SCF for buyers?
- Ability to optimise or extend Days Payable Outstanding (DPO)
- Stronger and more resilient supply chain
- Better vendor relationships and continuity of supply
Knowledge Center
View All
Haldiram Franchise Cost in India: Investment & Benefits
The Haldiram franchise cost in India can vary based on factors such as the business format,…
McDonald’s Franchise Cost in India – Investment & Profit
Unlike many fast food brands, McDonald's does not offer individual entrepreneurs the opportunity…
Cash Credit Loan - Meaning, Interest Rates, and Eligibility
A cash credit loan, or a CC loan, is a popular working capital financing option that can help…
Balance of Payment: Components, Formula, and Importance
The Balance of Payments (BOP) is a systematic record of economic transactions between a country'…
This facility is currently unavailable. We regret the inconvenience caused. In case of any queries, please call us on 18001036001 or write to us at [email protected]
Insurance disclaimer SMICC is registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a Corporate Agent. IRDAI Registration No.: [CA0098] CIN No. U65191TN1994PLC079235. The insurance policy is a contract between the customer and the insurance company, and policy is underwritten by insurance companies. SMICC acts only as the distributor and is not responsible for any risk, policy issuance, claim settlement/repudiation etc. Insurance is the subject matter of solicitation. Purchase of insurance is voluntary and subject to insurer underwriting and policy terms and conditions. Customers are advised to read the policy terms and conditions, benefits, exclusions, claim settlement carefully before purchase. Kindly note that “Insurance Products” are not mandatory for the purpose of the application and disbursement of loan. It shall be the sole discretion of the customer, by providing explicit consent, to avail such insurance along with the Loan.
Beware of Spurious calls/ Fraud phone calls IRDAI is not involved in activities like selling Insurance policies, announcing bonus or investment of premium. Public receiving such phone calls are requested to lodge a police complaint.