While supply chain financing has been around for several years, there has been a recent spike in the number of players in this industry, given the wider adoption. Companies worldwide are reaping rewards of such programs with improved cash flows and supply chain partner stability, leading to higher acceptance.
The right SCF partner complements you by automating your workflows and accelerating collections while allowing you to focus on your core commercial activities. But how do you choose the right partner for your business growth? What are the factors to consider while selecting a Supply Chain Finance Partner for your organization?
Here are five tips to help you select the right SCF provider:
1. Technology-backed solution
One of the key differentiators of successful SCF programs is the underlying technology powering the transaction. Gone are the days of physical documentation and paper-based invoice approvals. Today, the entire receivables and payables management can be managed online efficiently with
minimal manual intervention.
For SCF programs to be efficient and scalable, it is crucial to partner with FinTech providers leveraging the latest technology. From customer onboarding to invoicing, payment, settlement, and reconciliation, technology plays a pivotal role in ensuring SCF programs’ smooth functioning. At Mintifi, our API-driven integrations ensure that customers are onboarded on to our platforms with minimal documentation and verification. Once onboarded, the entire workflow is customized and automated to limit manual intervention and speed up turnaround time.
2. Partner onboarding capability
Several SCF programs do not reap the desired benefits for large corporates as they never scale to include majority supply chain partners into the financing programs. Without scale, SCF programs can become a pain rather than a boon.
You should always partner with an SCF partner that gives you the reach to extend financing to your entire customer base. Mintifi is one such platform that enables you to get all your partners to get onboard the program with minimal documentation and a hassle-free procedure.
The benefits of SCF are tangible and more compelling when there is a broader base of suppliers or distributors financed. It is essential to partner with the right Fin-tech provider to scale the SCF program to its potential to unlock maximum benefits.
3. Accessible for all tiers
Businesses today are diversified with supply chain partners distributed across the country or even the globe. Considering that most of the firms deal with an array of retailers across tier 2 or tier 3 cities, you should look out for multi-lingual supply chain finance partners with a deeper reach across Indian cities
Your ideal SCF partner should also have a well-established support team to train and facilitate your partners to come on board with the new platform. At Mintifi, we partner with our corporate clients to co-create and transform a successful SCF program’s vision to reality. Our team of customer support executives individually connect with each supply chain partner to ensure seamless onboarding.
4. Transparency in charges and operations
While deciding to collaborate with an SCF partner to grow your business, be sure to double-check transparency in charges and operations.
SCF helps propagate goodwill among supply chain partners and strengthens the relationships within the ecosystem. Your partners shouldn’t feel short-changed with hidden charges, overdue interest, or unreasonable processing fees. Seek clarity right at the start of the contracting process to offer the best terms for your partners.
It is also essential to ensure transparency in transactions to all stakeholders to facilitate real-time working capital management and establish trust in the partner’s minds.
5. Customizable business solutions
A significant drawback of financing programs is that they fail to customize the solution to meet industry-specific requirements. The right SCF partner can help you maintain a seamless experience for your customers by integrating the financing platform with your ERPs.
Host to host integration ensures there is no additional workflow added to your team’s effort. And there is real-time transparent visibility on the status of an invoice, due date, and payment confirmations for all stakeholders.
Making Lending Simple
Ensure that you choose a supply chain finance partner that enables you to work on your terms rather than theirs.
Remember though, opting for an SCF program is not just the end of your collection woes, but also the beginning towards a more diversified approach to receivables management. Reach out to experts at Mintifi to learn more about how we can facilitate in setting up the right supply chain finance programs for you.