Supply chain finance could stimulate UK economy, says research body

17th June 2009 | supply chain | A think tank has urged the Government, financial institutions and retailers to consider Supply Chain Finance to prevent working capital problems across the supply chain.

Using SCF would see money for goods held by a third party financial institution, which pays suppliers quickly but allows retailers to settle on their own payment terms.

The Procurement Intelligence Unit believes this would resolve cash flow problems for both retailers and their suppliers, and be a pragmatic way of kickstarting the UK economy.