Supply Chain Finance

Trade finance: a growth maximizer

The role of trade finance is often seen as one of ensuring predictable cashflows. While this is obvious and important, there are a number of collateral benefits of trade finance programs that act as powerful drivers of growth. In fact, trade finance is a powerful lever that CFOs can use to impact both toplines and bottom lines of their companies.

Chasing growth, not cash

Ensuring that your Receivables ecosystem is well financed removes the daily headaches on liquidity. More importantly, it frees up time for sales teams to focus on growth (their real job) rather than on following up on payments. The benefits are not just a lot of incremental – a motivated sales team applying all their energy on revenue building and business development can bring disproportionate growth to an organisation.

It pays to pay on time

The same principle applies on the Payables side too. By helping vendors with timely or even early payments, we ensure smooth supplies, better pricing and good service. Companies tend to ignore the positive value these bring, or the hidden costs of the tensions on the supply chain due to delayed payments.

The value of relationships

Supply chain dynamics can often be a battle of attrition instead of a collaboration. And the flow of payments is usually at the root of these tensions. When timely payments and extended credit are available to all parties, there is a win-win scenario that brings stability to the relationship – which in turn becomes the foundation of a positive cycle towards shared growth goals. While this may seem as a ‘softer’ aspect, any sales or procurement executive will vouch for the importance of this – especially with MSME supply chain partners.

The real impact of all of these benefits becomes visible when our entire supply chain has access to affordable finance. However, getting large numbers of geographically widespread MSME partners onto a program has always been a pain point for both banks and corporates. Traditional lenders don’t have the right products or infrastructure to service MSME needs and the varied nuances within that group. Hence large parts of supply chains remain starved of affordable credit, causing disruptions for everyone on the chain.

At Vayana, we recognize that one size can never fit all. We deep dive into the needs of different tiers of borrowers and curate financing products that fit into specific needs – depending on borrower type, company size, credit profile, time and place, preferred source, instruments of financing, and lots more. We have therefore curated a wide range of products that can cover the entire supply chain and keep things running smooth and friction-free. Our technology platform also allows effortless onboarding and disbursement through multiple bank programs through a single window. And all this without you or your supply chain partners having to make any change in processes or infrastructure.

To read more about how Vayana can help you maximise growth through wider trade finance coverage please click here. If you’d like us to take you through the details over a meeting or call, email us at scf@vayana.com

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