📘 Supply-chain-finance – Legal FAQs

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❓ What is supply chain finance?

It’s a set of financial solutions that optimize cash flow by allowing suppliers to get paid early while buyers pay later.

❓ Who benefits from SCF platforms?

Suppliers improve liquidity, buyers extend payment terms, and financiers earn interest—it's a win-win.

❓ How do startups offer this service?

They partner with banks or NBFCs and use software to assess invoice data, risk scores, and automate payouts.

❓ What industries use SCF most?

Retail, FMCG, auto, pharma, and manufacturing sectors heavily rely on supply chain finance.

❓ Is collateral required?

No. SCF is typically unsecured, relying on the creditworthiness of the buyer rather than the supplier.

❓ Do platforms support invoice verification?

Yes, many SCF platforms integrate with ERP systems to verify, approve, and process invoices securely.

❓ Are payments done via the platform?

Yes, disbursements and repayments are often handled directly within the platform through bank integrations.