Other Supply Chain Finance Mechanisms

This chapter delves into several additional supply chain finance (SCF) mechanisms, emphasizing distributor financing, bank payment obligation (BPO), and structured commodity finance. Distributor financing focuses on optimizing cash flow in supply chains with extended payment terms. In contrast, BPO offers a digital mechanism to streamline international trade payments, providing security to both buyers and sellers. Meanwhile, structured commodity finance is highlighted as a pivotal tool for managing risks associated with assets that have fluctuating values, especially in the commodities sector.