Supply Chain Finance refers to a variety of financing and business processes aimed at providing short-term credit to improve the working capital situation throughout the supply chain for both buyers and sellers.

While the provision of short-term credit is not something new, connecting the financial transactions to the movement of value through a supply chain is. This is the process that lies at the heart of supply chain finance.

The supply chain network – usually referred to as the ecosystem - is a complex one. This is especially true for multinational companies that operate with suppliers all over the world. The soundness of a global supply chain isn’t simply measured by revenues and profits. A more appropriate indicator is how efficiently capital flows between buyers and suppliers. Slow moving capital, just like slow moving inventory, creates unnecessary costs and inefficiencies in a supply chain.

In order to understand how supply chain finance can help both buyers and suppliers, it is important to understand its underlying principles. This is the objective of this course.