About Supply Chain Finance
Supply chain finance is also called supplier finance or reverse factoring. It is a combination of technology-based business and financing processes. It is a term describing a set of technology-based solutions that purpose to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction. It offers short-term credit that optimizes working capital for buyers and sellers. It provides a range of financing and risk mitigation solutions. Increasing application of supply chain finance to support business growth and the growing demand from larger corporates are the major factors that drive the global market growth.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 11.24% |
Global Supply Chain Finance is a fragmented market due to the presence of various players. The players are investing more in mergers and acquisitions to enhance their market presence. The companies are planning strategic activities like partnerships, mergers, and acquisitions which will help them to sustain in the market and maintain their competitive edge. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Supply Chain Finance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Citigroup (United States), Banco Bilbao Vizcaya Argentaria (Spain), Scotiabank (Canada), Santander Group (Spain), UniCredit (Italy), DBS Bank (Singapore), Standard Chartered (United Kingdom), Standard Bank (South Africa), Orbian Corporation (United States) and BNP Paribas (France) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Mitsubishi UFJ Financial Group (Japan), UPS Capital Cargo Finance (United Kingdom) and Kyriba Corp. (United States).
Segmentation Overview
AMA Research has segmented the market of Global Supply Chain Finance market by Type (Loans, Purchasing Order Finance and Factoring and Invoice Discounting), Application (Improved Cash Flow, Enhanced Supplier Relationships, Reduced Financial Risks, Cost Savings and Others) and Region.
On the basis of geography, the market of Supply Chain Finance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Business Model, the sub-segment i.e. B2B will boost the Supply Chain Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Organization Size, the sub-segment i.e. SMEs will boost the Supply Chain Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End-User, the sub-segment i.e. Automotive will boost the Supply Chain Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Service, the sub-segment i.e. Orders and Invoicing will boost the Supply Chain Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Constrained Bank Credit, The popularity of New Analytics Driven Solutions and Technological Advancement over the Globe
Market Growth Drivers:
Scarcity of Capital and Increasing Credit Arbitrage and Evolution of Global Supply Chains with an Increasing Number of Suppliers and Transactions
Challenges:
Stringent Regulations on the Supply Chain Finance
Restraints:
Rising New Providers and Platforms
Opportunities:
Surging Integration of Financial and Non-financial Solutions
Market Leaders and their expansionary development strategies
In October 2022, LSQ, a leading provider of working capital finance and payments solutions, and Infor Nexus, the leading global supply chain platform and a division of Infor, the industry cloud company, today announced an agreement that provides their network of suppliers access early payments through an LSQ FastTrack supply chain finance program.
In November 2023, Zetrix, a leading public blockchain platform that is powering digitisation of cross border trade, today announced the commencement of a pilot project to offer supply chain financing products in conjunction with Chinese banks for international importers and exporters.
Key Target Audience
Supply Chain Finance Providers, New Entrants, Regulatory Bodies, Potential Investors, Research and Development Institutes and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.