“Sustainability Success” - How supply chain finance helps post COVID-19 economic recovery
Updated: Sep 15, 2020
Supply Chain Finance has grown exponentially over the last decade but we believe that this is only the beginning of this journey.
Within Covid-19 has hit global trade and investment market since February, governments, businesses and individual consumers suddenly struggled to approach essential products and materials, and were forced to confront the fragility of the modern supply chain.
Nu-Credits attended The 4th China Supply Chain Finance Annual Conference in Beijing, industry leading experts claimed that we need to find supply chain solutions which are connected, responsive, and digitally enabled to operate as intelligent business networks that connect systems, processes, and partners.
“The urgent need to design smarter, stronger and more diverse supply chains has been one of the main lessons of this crisis” said by Nanding Li, Nu-Credits Credit Risk Manager.
For all sizes of enterprises, to remain competitive and resilient in today’s world, their supply chains must be connected, responsive, and digitally enabled, in order to operate as intelligent business networks that connect systems, processes, and partners.
Yanling Zhang, Executive Vice-President of the Bank of China, pointed out that SMEs may be facing two challenges at this stage: unreliable accounts and inventory, it is easy to bring them bad debt.
Although governments and central banks have reacted with impressive speed to inject liquidity into the system, financing arrangements will need to adapt to give smaller suppliers better access to working capital, the reality of the crisis presents an increasingly stark choice between self-preservation and supplier solvency.
Supply chain finance is one way for companies to overcome this challenge, historically, supply chain finance has often been offered as a mitigation to extended supplier payment terms that improve the buyer’s cash flow.
While this may help the buyer free up capital to fund sustainability initiatives, longer payment terms can still harm suppliers if the extension is unreasonably long and the program poorly implemented.
Nu-Credits is committed to establishing a fast-respond, reliable and intelligent trade finance service platform for SMEs, we offer all sizes enterprise an easier financial getaway to shorten payment term. Contact us today to find the best solution for your business email@example.com