<p>This study aims to investigate the factors influencing the adoption of supply chain finance (SCF) and its consequences among small and medium enterprises (SMEs) by drawing on the social exchange theory (SET), diffusion of innovation (DOI) and resource-based view (RBV) theories. Empirical research was conducted using a survey method, and the data analysis was performed using partial least squares-structural equation modeling (PLS-SEM). The findings indicate the positive influence of information sharing (IS), collaboration (CO) and awareness (AW) on SCF adoption. We found that CO mediates the relationship between the independent variables: digitalisation of trade processes (DI), trust (TR) and dependence (DE), and SCF adoption. Further, our results showed that SCF adoption leads to improved financial performance (FP). The results of this study have practical implications for various stakeholders involved in SCF. SME owners and their supply chain partners can benefit from understanding the influential factors for successfully implementing SCF. Financial service providers, industry associations and policymakers can also utilise these findings to enhance their understanding of SCF and make informed decisions and policies accordingly.</p>