Supply Chain Finance: A Tool for SME Development for Socio-Economic National Relevance
Although Supply Chain Finance benefits Buyers, Suppliers and Funders, it also has a big role to play within the micro socio-economy of the country that it is operating under.
Major countries such as Britain and the United States have understood the rewards of endorsing Supply Chain Finance with their respective “UK Initiative” of 2012 and the Barack Obama’s “SupplierPay Initiative” whereby both David Cameron’s government as well the White House Administration of Barack Obama realized the economical benefits of endorsing such a program.
SMEs are the backbone of any economy, making up 60%-80% of total employment, so it makes sense from an economical point of view to help these Small & Medium sized companies grow as much as possible in order for them to be able to hire more people and help sustain and grow the economy as a whole.
Even though Large Anchor Buyers and big Financial Institutions stand to gain from adopting Supply Chain Finance, Suppliers are the ones are the most directly affected and benefit greatly by having their Account Receivables turned into instant cash and get to improve their cash flows immensely with lower interest rates.
UbiQ Innovations SCiSupplier program is an effective tool that Governments can use to promote SME support.
Contact UbiQ Innovations today.