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SUPPLY CHAIN FINANCING: A BETTER APPROACH FOR WORKING CAPITAL ASSISTANCE
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Author(s):
D SANTHOSH KUMAR, SHIVESH KUMAR JHA
Vol - 8, Issue- 1 ,
Page(s) : 190 - 199
(2017 )
DOI : https://doi.org/10.32804/IRJMST
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Abstract
Abstract
Working Capital assistance is one of the main activities of the commercial banks. Banks tend to finance the operating assets of the entity or the borrower. The delivery of assistance has been mainly as cash credit/overdraft facility. The said delivery mechanism has its inadequacies and leads to inefficiency and distortions. Lenders over the years, have come across situations when the underlying assets are not available during times of stress. Many attempts have made to improve the delivery and more focus is being given to buildBill Finance as an alternative mode of delivery. However, bill finance is still to take firm roots as it is only seen as an alternative mode rather than the main delivery mechanism. With recent international events unfolding like the financial crisis of 2008 the Supply Chain Finance (SCF) has emerged out to be a better tool for working capital assistance.
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