4 Supply Chain Finance platforms bridging the Credit gap for SMEs

By Gloria Methri

Supply chain finance serves as a short-term lending solution to alleviate cash flow challenges caused by long payment cycles and complex supply chain structures. It enables suppliers to free up working capital held in outstanding customer invoices while also allowing buyers to extend payment terms.

This financial tool proves especially valuable for enterprises supplying goods or services to larger clients, as it is based on the credit rating of the buyer. It is also highly beneficial for smaller supplier suppliers who often face credit difficulties due to delayed payments.

Economic volatility and corporate social responsibility can disrupt business in today’s uncertain economic environment. As supply chain finance (SCF) becomes an effective method that improves supply chain financial performance, the demand for digitising the space is quintessential.

Listed below are 4 FinTechs digitising supply chain financing in Europe:

• Finverity

Finverity was founded in London in 2017, to help to fix the global trade finance gap. The Finverity digital ecosystem provides the technology, working capital and expertise to make trade and supply chain finance (SCF) work for businesses, banks and NBFIs. FinverityOS (SaaS), the end-to-end operating system is designed to digitally transform trade and SCF operations, client experience and revenue generation capabilities at local and regional banks and NBFIs.

• Lendscape

Lendscape’s Supply Chain Finance solution facilitates integration with both suppliers and buyers to provide an efficient, digital environment for the early settlement of invoices. The user experience is outcome-focused to facilitate frictionless day-to-day operations that enhance the business outcomes for all interested parties. Headquartered in London, and with regional offices in California and Singapore, Landscape employs over 200 people around the world.

• Provide Finance

Provide Finance is dedicated to easing the complexities of specialist financing. It offers supply chain finance services, including application support and funding. With a blend of innovation and expertise, it seamlessly connects borrowers, lenders, and intermediaries. Its solutions are fast and cost-effective, providing businesses with transparency, control, and tailored support. With Provide Finance, SMBs gain control through a real-time dashboard that tracks their project’s funding.

• Traxpay

TraxPay is a supply chain finance platform that helps with invoice payment automation. It enables companies to manage their working capital in a simple, secure and sustainable way using and combining all standard SCF tools. As a platform, Traxpay is a full-service provider that accompanies corporates through the various processes of an SCF program. The focus is on demonstrating the benefits of an SCF program and ensuring proper use. FinTechs such as Traxpay are partnering with established banks to make SCF programs offered easier to implement and ensure high supplier adoption.