Supply Chain Finance as a response to the economic crisis

The economic crisis caused by the COVID-19 pandemic and other uncertainties in recent times have highlighted the fragility of many companies' supply chains, causing delivery and payment delays and cash flow difficulties. One solution to overcome these difficulties could be the use of Supply Chain Finance (SCF).

SCF is a form of financing that allows supplier companies to obtain liquidity by advancing payments due from their customers. In practice, a bank or other financial institution takes the risk of paying the companies' suppliers, allowing the companies themselves to have access to funds immediately. In this way, companies can maintain the liquidity they need to continue operating and suppliers can receive their payments in a timely manner, reducing the risk of default. 

The SCF can be used by both large and small companies and can be used to finance a variety of goods and services, including raw materials, components, logistics services, and professional services.

In addition, SCF can help reduce costs for provider companies, as it may enable them to obtain payment advance at lower rates than those available for traditional loans. In addition, companies can use SCF to diversify their funding sources and reduce dependence on traditional banks.

In conclusion, Supply Chain Finance can be an effective solution for companies struggling with the economic crises of recent years by taking advantage of their customers' increased financial strength. 

Polaris is a digital platform designed to dynamically and centrally manage Supply Chain Finance programs and can be a solution to help your business overcome the economic crisis of recent years.