There is evidence that supply chain finance can help companies optimize their working capital and improve cash flow.
One study found that supply chain finance can help companies reduce the time it takes to pay suppliers, which can improve relationships and reduce the risk of supply chain disruptions. The study also found that supply chain finance can help companies manage their cash flow more effectively, especially during times of economic uncertainty or when they are experiencing rapid growth.
Another study found that companies that use supply chain finance report higher levels of financial performance and liquidity, compared to those that do not use it. The study also found that supply chain finance is especially beneficial for small and medium-sized enterprises (SMEs), which often have limited access to traditional forms of financing.
Overall, the empirical evidence suggests that supply chain finance can be an effective tool for optimizing working capital and improving cash flow for companies, particularly SMEs. It can help companies reduce the time it takes to pay suppliers, manage their cash flow more effectively, and improve relationships with suppliers.
Qube Supply Chain Finance Added Value
PRI® Supply Chain is a proprietary payables & receivables management platform, supported by Qube Servicing, generating improvement of working capital by accelerating the payment cycle and turning receivables into cash faster.
The PRI® Supply Chain platform manages, controls and monitors , on a daily basis as well as intraday, all tasks defined as part of supply chain finance to ensure:
- Enhanced visibility of approved invoices;
- Accelerated collections processes;
- A low-cost financing option; and
- Streamlined account reconciliation and forecasting.
PRI® Supply Chain has been developed based on the in-depth experience with supply chain finance as well as receivables finance with the objective to have a fully front-to-backend automated supply chain finance platform based on historic and actual creditor data which to provide full insight & transparency which will be evidenced by demo on request.
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Working Capital in motion