Supply Chain Finance Analysis

Supply Chain Finance as an emergent and currently, one of the most viable and plausible financing procedural instruments is not a new conceptual framework.It has been widely noted and acclaimed as an essential aspect of supply chain management and trade finance.The global economic crises have necessitated the urgent consideration and eventual adoption of Supply Chain Finance (SCF).SCF is noted for its capability to collaborate and coordinate trade partners and procedures in order to increase Trade transparency, the shift from paper-laden business documentation to comprehensive sophisticated automation process of concise detailed information exchange and the ultimate dematerialization of the entire supply chain process.The processes involved in a thoroughly comprehensive SCF scheme also reduces trading costs and risks shouldered by all the parties involved in the process.This study attempts to delineate and define the not so obvious but diverse trading efficiencies, value enhancement enjoyed by the users of SCF and the enormous improvement in working capital accessibility and maximization afforded by SCF in the entire supply chain process.It also seeks to highlight some of the major challenges of the SCF system thereby prescribing and providing working innovative but compelling solutions to streamline and ensure the viability and the instrumentation of SCF mechanisms and their capabilities of eradicating trade finance problems faced by various trade partners and companies.This is, by far, a brilliant innovative method of leveraging working capital accessibility and the substantial enhancement of credit ratings and values of the various companies using the SCF system to optimize trade efficiency, predictability and ultimately profitability.