The need to increase capital or inject capital more quickly into the supply chain is due to several factors: Incomlend offers supply chain financing as a solution for suppliers and buyers in order to close the cash gap that prevents many companies from growing. Supply chain financing generally applies to the trade in open accounts where goods are shipped and delivered before payment is due. The goods, along with all the necessary documents, are delivered directly to the importer who has agreed to pay the bill on a specified date. But it lacks a decisive role in this equation, and it is the “translator” for supply chain financing – the company that, based on the experience of logistics/transportation and financial services. The translator is the expert, if you will, who can bring all the entities to the table – transport and logistics; Banks; The buyer and sellers and speak different languages and understand the needs of each party. In addition to participating in the financial transaction, the translator can help bridge the information gap between the physical and financial worlds and provide a critical analysis of the information collected in the supply chain. The financial institution acts as an intermediary; First, he on board and conducted due diligence on the counter-parties. After the Knowledge-Your Client procedure, it evaluates the merits of the seller and his debtors. In addition, the duration of the business relationship and solvency are also analyzed. Thus, the company calculates a commission based on the fictitious amount and the days financed. The more time the buyer needs to pay, the higher the fees. While buyers extend payment terms to their suppliers, suppliers often have limited access to short-term financing and therefore higher financial costs. This transfer of costs to suppliers results in a financially unstable and riskier supply base.
Overall, the baseline report showed that companies should follow three key areas for improvement: funding for the CFSM; GSCF technology GSCF visibility.