Supply Chain Finance – The Necessary Accelerator

A strong Supply Chain creates a basis for a strong business. The supply chain always remains at the core of it all. It not just connects buyers and suppliers but also builds great products, partnerships, relationships, and in turn creates a solid foundation for a bright future of the business.

But what remains at the core of effective Supply Chain Management? Can a Supply Chain function properly if the financial aspect of the company is not on point??

Every business can better its operations if the overall working capital is robust. Working capital does not just benefit the day-to-day activities of a business but plays a very crucial role when it comes to expansion and growth.?

How can a Supply Chain Strengthen its Finance? Enter Lamaa.

At Lamaa, our complete focus is on developing a robust Supply Chain Financing product that provides a long-term solution to better your Supply Chain – Lamaa’s Dynamic Discounting.?

More about our offering later, let’s deep dive into Supply Chain Finance first.?

What is Supply Chain Finance?

Supply Chain Finance is a term coined for a digital solution that aims at reducing costs and in turn improving efficiency for both buyers and suppliers in a supply chain. Supply Chain Financing works by financially supporting each and every member of the chain right from the start of it up till the end.??

Lamaa’s Dynamic Discounting

Let us take Lamaa’s Dynamic Discounting for example. Lamaa provides the perfect tool that assists both, the buyer, and the seller. With Lamaa’s Dynamic Discounting, the suppliers gain early payment in exchange of a minute discount on their invoices. The process starts with the buyer approving a particular invoice, which can then be put up for dynamic discounting or invoice discounting. Financial Institutions or Investors can then pay off that invoice helping the supplier receive instant payments, and the buyer gains a discount over and above the standard credit period. Basically, Lamaa offers a win-win situation for both the parties and helps strengthen the entire supply chain in the process.?

Benefits of Supply Chain Finance

Adding Supply Chain Finance to your business can potentially transform it. Having excess working capital at hand always presents other investment or expansion opportunities for a company. Apart from the obvious, plugging in Supply Chain Finance like Lamaa’s Dynamic Discounting has many benefits:

Risk Reduction

Well-supported suppliers reduce the risk of disruption to the Supply Chain and smoother workflows.

Better Relations

Invoice Discounting helps strengthen long term supplier-buyer relations as both parties now receive what they need, better working capital and prices.

Overall Business Growth

Be it the buyers’ side or suppliers’. Supply Chain Finance betters the supply chain thus providing more time, energy, and capital to venture towards growth in the business.?

Better Forecasting

With the payment timings now streamlined, suppliers can forecast their cash flow much more effectively and easily in turn bettering their service and productivity.?

A Word from Lamaa

There’s a reason the world is moving towards adopting Supply Chain Finance for their supply chains. Supply Chain Financing options like Lamaa’s Dynamic Discounting offer a win-win situation to both the buyers and suppliers and put forth a risk-free solution to the age-old problem of working capital mismanagement of MSMEs due to delayed payments. Putting technology in finance is the way to move forward and Lamaa wants to help Saudi do just that, in turn helping Saudi-made Companies take a step in the direction of the goals of Vision 2030.