Supply chain finance: funding small suppliers with a large buyer’s credit

FintechBy: Farzad Didehbaz2 min readSource: EcoIran
Supply chain finance: funding small suppliers with a large buyer’s credit

1Introduction

Small suppliers deliver goods but get paid months later, locking up working capital.

2Discussion

A financier pays the supplier early against an invoice approved by a creditworthy buyer, collecting from the buyer at maturity.

3Conclusion

Instruments such as Iran’s GAM securities follow this logic; digital invoices reduce risk and cost.

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Sources

  1. EcoIran ↗
  2. MBRI ↗
همفکران فناوری شریفThis article summarises the official sources cited, prepared by the Hamfekran Fanavari Sharif team for finance leaders.
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