As trading business undergoes a shift from letters of credit (LC) to open account transactions, financial supply chain management solutions have become increasingly relevant. The credit squeeze triggered by the financial crisis has made large corporates more alert to issues surrounding liquidity and risk in their supply chains. To ensure supply chain stability, forward looking companies are seeking value-added financing facilities that benefit the various stakeholders located along the corporate supply chain.
This new attitude has contributed to the increased uptake of supply chain finance (SCF), as attested by global banking institutions in previous research reports commissioned and released by Demica in recent years.
Phillip KerleChief Executive Officer