Decoding deep-tier supply chain financing
The unsung heroes of the supply chain Most supply chain networks include several small suppliers who don’t get an opportunity to access the lucrative financing options available in the market, unlike the big players or anchors of the supply chain. Either they need to wait for months as per the invoice terms or are forced to offer heavy discounts to their buyers for early payments. Typically, a supply chain involves multiple steps, including procurement of raw materials, processing, production, and delivery of the product offerings. This network consists of not just the major players but also the lesser-known suppliers who play an equally important role in creating an ecosystem of international or domestic trade. Lesser-known suppliers need funds to run their business more than the tier 1 suppliers. However, the visibility in a supply chain is mostly limited to tier 1 suppliers. Globally, around USD 500 Billion cash is trapped between corporates and their suppliers, and it peaked ...