Fintech Solutions in Supply Chain

Advance reverse factoring

As new fintech solutions replaced traditional services, SCF has evolved.

Invoice Auctions

Many companies engage in a trade struggle to find financiers for their transactions. The problem lies in that, although they account for a large portion of trade (nearly half of EU trade), these small businesses present a higher risk to financiers than that of large enterprises. As such, traditional financial institutions underserve SMEs.

Dynamic discounting

Dynamic discounting is a FinTech solution that aims at improving efficiency and lowering costs in supply chain transactions between buyers and sellers. It is a service that uses technology to offer suppliers early payments on their invoices in exchange for a discount on the goods or services they provide to the buyer.

Inventory finance

Inventory finance is a popular FinTech solution that offers financing opportunities to small and medium-sized companies that lack an established credit history. These are companies that struggle to qualify for traditional bank loans but need capital to purchase inventory that will take time to sell. Inventory finance is filling the void left by institutions that mainly offer their financing services to multinationals and is opening new possibilities for smaller businesses to improve their cash flow and grow.

Takeaways

These innovative FinTech solutions are key to solve challenges that arise from supply chain transactions between buyers and sellers. New and emerging FinTech companies are acting as a stepping stone for businesses to receive and deliver payments in a timely manner, and are helping to finance their Net Working Capital through access to alternative liquidity sources. The recent expansion of international trade and e-commerce is fueled by the growing influence of these players, whose services are allowing increasingly more enterprises to conduct successful trade deals.

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Bocconi Students Fintech Society

Bocconi Students Fintech Society

Fintech is the future of finance, are you ready to join the revolution?