In the context of unprecedentedly low borrowing costs, and growing corporate emphasis on key performance indicators (KPI’s), large companies are increasingly utilising working capital management techniques such as supplier financing as a means of improving their balance sheet and enhancing trust, stability and efficiency in the supply chain.
However, while large corporates increasingly recognise the value of supply chain finance programmes, many have experienced difficulties onboarding their suppliers to such programmes – reducing the benefits for all involved.
Writing in Global Banking and Finance Review, Adeline de Metz, Head of Supply Chain Finance Solutions at UniCredit emphasises the important role banks must play in helping to smooth supplier onboarding:
“By investing in robust digital platforms that bring simplicity, transparency and speed to the complex on-boarding process, and tailoring working capital programmes to the needs of individual suppliers, banks can help corporates establish workable supply chain finance programmes – in turn creating a more efficient, trusting and profitable environment for all.”
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