Supply chain finance (SCF) is a term that describes a set of solutions that aims to lower financing costs and improve business efficiency for buyers and sellers. It works by using a third party, such as a bank or NBFC, to provide short-term credit to both parties. This way, the supplier can get paid faster and the buyer can extend their payment terms.

Supply chain finance can benefit both buyers and sellers by optimizing their working capital and liquidity, reducing their financing costs, enhancing their cash flow visibility, and strengthening their relationship. It can also help mitigate risks such as currency fluctuations, payment delays and supplier default.