The Impact: Why is SCF a Fortune 500 Best Practice?

Supply Chain Finance (SCF) is a practice that has become increasingly popular among Fortune 500 companies in recent years. It offers a free working capital boost to those Fortune 500 giants at no cost to them by making it easier for them to negotiate extended payment terms with their vendors and boost Days Payable Outstanding.

However, SCF is only offered by select banks to their largest Fortune 500 clients, leaving mid-sized companies at a disadvantage. This is because mid-sized companies cannot extend payment terms with their own suppliers using SCF like the Fortune 500 giants can.

Quartix levels the playing field by offering mid-sized companies an SCF proposition tailored to their needs. These mid-sized companies (‘buyers’) could allow their own high-spend suppliers to accelerate approved payments whenever these vendors want, and have these early payments funded by Quartix. This helps neutralize vendor friction once its mid-sized buyer negotiates longer payment terms with its vendors.

Quartix interfaces with most commercial ERP systems. With Quartix, mid-sized companies can benefit from the same capital efficiency created by SCF as the Fortune 500 giants.

By offering an SCF solution to mid-sized companies, Quartix helps to create a more equitable supply chain landscape. Mid-sized companies are no longer at a disadvantage when it comes to extending payment terms and managing their own working capital.

In addition, by providing vendors with faster access to working capital, SCF can also help to strengthen the overall supply chain. This is because vendors can use the capital to invest in new equipment, expand their operations, and hire more employees. In turn, this can help to create a more stable and resilient supply chain that is better equipped to handle disruptions such as those caused by the COVID-19 pandemic.

In conclusion, SCF is no longer available only to Fortune 500 giants. Mid-sized companies can now access this advanced digital solution by partnering with Quartix. This partnership makes it easy for these companies to negotiate longer payment terms with their own vendors with greater ease, freeing up trapped cash and optimizing cash flow.

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

More posts