Abstract

Supply Chain Finance is as a portfolio of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in supply chain processes and transactions. SCF techniques existing on the market can be divided into three categories: receivable purchase, advanced payable, and loans. These financing solutions are significantly ‘eventdriven’, since they aim at satisfying the financial requirements of buyers and sellers, that are triggered by purchase orders, invoices, receivables, other claims, and related pre-shipment and post-shipment processes along the increasingly complex supply chains in which they are involved. Along the way from raw material procurement to production, sales and end-users, several source of risks can threaten the possibility of completing the transactions and the regular functioning of supply chain finance. Digitization can help in managing these risks, facilitating the control of the factors underlying them.

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