Podcast | Supply-Chain Finance: Myth and Reality

Is supply-chain finance just a way for buyers of goods and services to squeeze discounts out of their suppliers?

Some have gone so far as to suggest that supply-chain finance is essentially a means for buyers to bully suppliers. Either buyers stretch payment terms to the breaking point, or offer to pay promptly in exchange for a deep discount off their bills. The latter option is indeed a way to accelerate payment, but it doesn’t have to take the form of strong-arming by the buyer. On this episode, we hear from PJ Bain, chief executive officer of PrimeRevenue, who argues that supply-chain finance offers benefits to buyer and supplier alike. It allows the parties to optimize payment terms, make better use of working capital, shrink the cash-conversion cycle and provide crucial liquidity in the face of economic uncertainty. In today’s economy, Bain says, there’s a big appetite for early payment, but it doesn’t have to break suppliers or endanger their profit margins. Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.

Show notes:

An overview of supply-chain finance from PrimeRevenue.