Faqs - L&T Finance

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What is Supply Chain Finance?

Supply Chain Finance helps businesses convert their invoices/bills into cash, providing the working capital needed to support day-to-day operations. It allows businesses to raise funds against unpaid invoices.

How can businesses implement supply chain finance?

Businesses can implement supply chain finance by partnering with financial institutions that offer SCF platforms, integrating technology for digital invoicing, and coordinating with suppliers and buyers for seamless payment terms.

Can small businesses benefit from supply chain finance?

Yes, small businesses benefit from supply chain finance by accessing early payments for invoices, improving cash flow, and reducing the need for collateral, helping them manage working capital more effectively.

What’s the difference between supply chain finance and factoring?

Supply chain finance helps buyers and suppliers optimize cash flow by extending payment terms, while factoring involves selling invoices to a third party (factor) for immediate cash at a discount.

How does supply chain finance impact global trade?

Supply chain finance improves global trade by enhancing liquidity for both buyers and suppliers, reducing payment risks, and enabling smoother cross-border transactions through flexible financing options.

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