Rupin Hemant Banker

Running a business is rarely just about making sales; it’s about keeping money flowing smoothly. Even profitable companies can struggle if cash is tied up in invoices waiting to be paid. That’s where financial tools like supply chain financing and factoring come into play. While both aim to ease cash flow, they operate differently and serve distinct business needs. Understanding how each works can help business owners make smarter decisions and avoid unnecessary stress. The Challenge of Waiting on Payments Imagine a small furniture manufacturer delivering orders to a large retailer. The products leave the factory on time, but the payment terms are 60 days. Meanwhile, bills for materials, labor, and utilities keep arriving. This gap between earning revenue and paying expenses is a cash flow bottleneck that many businesses face. Financial solutions like supply chain financing and factoring help bridge this gap and keep operations running smoothly. How Supply Chain Financing Puts Money i...

Understanding the Intersection of Finance and Supply Chain The relationship between finance and the supply chain is far more integrated than many people realize. At first glance, finance might seem like a purely numbers-driven discipline , focusing on budgets, investments, and profitability, while supply chain management appears rooted in the physical flow of goods and services. However, in practice, the two are deeply intertwined. Financial considerations influence every stage of the supply chain, from sourcing and production to distribution and after-sales support. A company’s supply chain is essentially a network of processes and relationships that deliver value to customers. Every decision within that network has a financial implication—whether it’s choosing a supplier based on cost efficiency, deciding when to purchase raw materials, or determining optimal inventory levels. Finance plays a critical role in ensuring these decisions not only meet operational needs but also align wi...