From Trade Finance to Supply Chain Finance to Procurement Finance
Trade finance is a long-established financial product. Over time, it has been extended to the financing of the entire supply chain. A modern vision considers the entire end-to-end procurement process. It is what this book defines as procurement finance. Procurement finance includes a holistic view of trade finance and supply chain finance. It extends also to the management of the payments connected with procurement. As such, it is an essential component also of the treasury management for the organizations. Its main objective is to manage the entire process in such a way to improve the relationships with the vendors, optimize working capital and liquidity, support effective payment systems, and add value to the customers and to the organization.