Supply chain finance (SCF) is a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction.

SCF methodologies work by automating transactions and tracking invoice approval and settlement processes, from initiation to completion.

This advantage lets buyers negotiate better terms from the seller, such as extended payment schedules. Meanwhile, the seller can unload its products more quickly, to receive immediate payment from the intermediary financing body.

Supply chain finance works best when the buyer has a better credit rating than the seller.