Holistic supply chain finance can make it easier for those suppliers to obtain financing, earlier in the process, and at a lower cost of capital. For suppliers that are in a cash crunch, this lifeline could make the difference between insolvency vs. survival. From the buyer’s perspective, this can be especially critical for one-of-a-kind suppliers that are difficult or nearly impossible to replace. And it is accomplished without the buyer having to inject their own funds to bail out the supplier. Instead, holistic SCF creates a healthier supplier, rather than providing temporary “life support” to an ailing supplier at a cost to the buyer.
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