Supply Chain Finance: Agile Financial Solutions for Business Growth

Supply Chain Finance (SCF) is a set of financial solutions that enables businesses to optimize working capital and improve liquidity by streamlining payment and invoice collection times across the supply chain. PlusAdvance offers an innovative SCF platform that helps businesses centralize and simplify the management of products that, based on business needs, the CFO chooses to utilize. With SCF solutions, companies can enhance cash flow, reduce risks, and achieve better financial performance.

New Opportunities in Supply Chain Finance for all the actors involved, including SMEs

From Closed Platform Models...

The Supply Chain Finance (SCF) landscape is a mix of established tools and innovative solutions, with the latter gaining traction due to their greater flexibility. However, the adoption of these tools is often hindered by the presence of multiple separate financial platforms, each with its own closed system, limiting accessibility for businesses. This fragmentation can create barriers for companies looking to implement seamless and efficient SCF strategies, hindering their ability to fully leverage the potential of these modern financial solutions.

Banks can play a crucial role in the economic recovery of the country by becoming true supply chain partners. B2B integration solution providers can expand their expertise to include financial levers, offering comprehensive support across both operational and financial aspects. Business associations can act as promoters, enabling SMEs to access benefits that would otherwise be out of reach. Additionally, industry-leading companies have the opportunity to create value for their supply chains, driving growth and fostering collaboration throughout the entire ecosystem.
Alessandro Perego
Scientific Director, Supply Chain Finance Observatory, Politecnico di Milano

… to Collaborative Models with Open Platforms

Modern technologies, such as cloud computing and artificial intelligence, have the power to break down traditional barriers. With a centralized and technologically advanced platform, businesses can now access a full suite of tools for optimizing working capital. This means less complexity with a single platform, rather than juggling multiple systems, and a unified point of contact for all financing needs. By leveraging these technologies, companies can streamline processes, reduce inefficiencies, and achieve greater financial flexibility.

However, this requires overcoming the logic of opportunistic exploitation of contractual power, in favor of long-term collaboration strategies that ensure benefits for all stakeholders. To achieve this, it is crucial to assess the financial situation of the entire supply chain, using tools that allow the identification of strengths and weaknesses. By adopting a comprehensive view of the financial health of the supply chain, businesses can foster more sustainable relationships, mitigate risks, and optimize performance across all parties involved.
Stefano Ronchi
Co-Scientific Director, Supply Chain Finance Observatory, Politecnico di Milano

Traditional Solutions

The majority of traditional financing solutions have been available for years, but often remain underutilized. Originally designed to provide individual companies with tools to access short-term capital, these solutions, through the Supply Chain Finance approach, can now foster sustainability across the entire supply chain. The three most representative tools are:

Main Solutions in Supply Chain Finance

examples

Innovative Solutions

Innovative Supply Chain Finance models involve both parties (customer and supplier) in order to enable better risk management and the creation of simpler operational processes.

Interactive guide

Discover in Real-Time the Optimal Supply Chain Finance Solutions for Your Business

PlusAdvance centralizes and optimizes the management of all products that help you manage your liquidity and cash cycle more efficiently.

Supply Chain Finance in Italy: Unlocking the 300 Billion Euros of Liquidity Trapped in the Working Capital Cycle!

The potential market served by Supply Chain Finance solutions in 2021 shows that innovative solutions are starting to occupy a significant position, but they require an open management platform that enables businesses to fully leverage all their potential.

509 Billion €

Invoice factoring

23%

Served

77%

Not Served

47

Billion €

Invoice factoring

57,4

Billion €

Factoring

7,2

Billion €

Securitization

7,2

Billion €

Reverse Factoring

2,1

Billion €

Credit Cards

1

Billion €

Future Credit Assignment

1,2

Billion €

Payables Financing

0,2

Billion €

Invoice Trading

0,3

Billion €

Dynamic Discouting

* Reference year 2021, data provided by the Osservatorio Supply Chain Finance of the Milan Polytechnic. The values ​​represent the outstanding subject of financing as of 12/31/21

With PlusAdvance, you can launch your own customized Supply Chain Finance program. And we're here to help.

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Useful resources

Complete Guide: How to Optimize Supply Chain Finance

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What they say about us

Support for the Agricultural Supply Chain

We pay the agricultural supply chain every 60 days, but we have decided to offer an additional service to suppliers, a sort of additional oxygen which, even more so at this moment, could be useful in the face of unexpected liquidity needs.In this way, farmers can rationalize their cash flows independently by being able to access advance payments of their invoices flexibly and without constraints.
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Emanuele Preve
CFO Riso Gallo SpA

Accuracy and Intuitiveness

PlusAdvance has excelled in the accuracy and ease of understanding of its features, as well as the timeliness of its service.
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PASQUA VIGNETI E CANTINE SPA
historic wine enterprise since 1925

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