Supply Chain Finance

Unlock working capital and mitigate risks

Supply Chain Finance solutions for buyers and suppliers

Supply Chain Finance, or SCF, helps buyers and their suppliers unlock working capital and minimize risk across the supply chain. Buyers can extend their payment terms while creating an opportunity for their suppliers to gain immediate access to early payment, at a cost based on the buyer's credit standing.

Let's work together on Supply Chain Finance

Contact our commercial services team

Supply Chain Finance benefits

Our cloud-based platform capabilities give our supply chain finance clients around-the-clock access to a new source of liquidity, empowering you to easily exchange electronic records and trigger financial transactions. Monetize invoices quickly, rather than taking days or even weeks. We stand in as your solution and liquidity provider to streamline the implementation process and initiate a better user experience for buyers and suppliers.

Buyer benefits

  • Extend payment terms
  • Improve Days Payable Outstanding, or DPO
  • Lower purchase prices
  • Reduce supplier risk

Supplier benefits

  • Leverage each buyer's credit standing
  • Reduce Days Sales Outstanding, or DSO
  • Receive immediate payment for outstanding approved receivables
  • Gain early visibility into approved receivables
Log In to SCF , Opens in a new tab

Our Process
How does Supply Chain Finance work?

Step 1

Supplier

The supplier ships goods and invoices to the buyer, generating a receivable.

Step 2

Buyer

The buyer uploads a receivable to our SCF online platform, confirming an amount for payment.

Step 3

SCF

We notify the supplier of the buyer's upload of a receivable and our approval to discount the receivable.

Step 4

Supplier

With access to all approved receivables, the supplier can select receivables for early payment at a discount.

Supply chain finance FAQ
People often ask us

Supply Chain Finance, or SCF, is a series of financial solutions that optimizes the management of cash flow and working capital through the supply chain for both buyers and suppliers. This financial strategy aims to streamline transactions, reduce payment friction and improve overall financial health within the supply chain ecosystem.

Supply Chain Finance operates by facilitating early payment to suppliers with the assistance of a financial institution, allowing businesses to optimize cash flow and strengthen relationships across the supply chain.

No. Supply Chain Finance and factoring are distinct financial solutions. While both involve managing cash flow, Supply Chain Finance focuses on optimizing payment terms and collaborations between buyers and suppliers within the supply chain. Factoring involves selling accounts receivable to a third party for various financial accommodations, irrespective of the supply chain dynamics (i.e. the buyer is not involved in a factoring relationship).

Supply Chain Industry Insights
Expand your knowledge

Industry Expertise

What's Covered by Commercial Auto Insurance?

Commercial vehicle insurance is crucial to protecting your company's fleet of vehicles, but it may also be helpful in other scenarios.
By insuring against the risk of any possible property damage, injuries, medical expenses or losses resulting from an accident or theft, you're effectively buffering your company's finances from potentially high claims and settlements.
Industry Expertise

Defining Success With Overseas Suppliers

Quality partnerships drive the likelihood of success in global sourcing relationships.
As with any business relationship, overseas partnerships carry risks.
Operations

Why You May Need a Resilient Supply Chain Model

Given the frequency of trade disruptions, resilient supply chains are proving worthwhile.
A resilient supply chain designed with redundancies can buffer your business from shocks down the line.
explore more supply chain finance

Normal credit approval applies.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.

CIT Commercial Services primarily conducts business through The CIT Group/Commercial Services, Inc., a wholly-owned subsidiary of First-Citizens Bank & Trust Company.

Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.

NMLSR ID 503941