New York, Aug. 25, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Supply Chain Finance Global Market Report 2023" - https://www.reportlinker.com/p06486621/?utm_source=GNW
, Royal Bank of Scotland Plc., Standard Chartered Plc., Alibaba, Oracle Corporation, SAP SE, PrimeRevenue, and Demica.
The global supply chain finance market is expected to grow from $5.65 billion in 2022 to $6.23 billion in 2023 at a compound annual growth rate (CAGR) of 10.1%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The supply chain finance market is expected to reach $8.86 billion in 2027 at a CAGR of 9.2%.
The supply chain finance market includes revenues earned by entities by providing various supply chain finance services such as real-time data and analytics, minimizing fraud risks, managing disputes, digitizing invoice collections, automating mechanical processes, generating risk-free returns, invoice discounting, and collateral-free solution management.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
Supply chain finance is a collection of advanced business tools and financing processes that reduce costs and increase efficiency for all parties engaged in a transaction. It is used to provide buyers and sellers with a short-term loan that optimizes working capital.
Asia-Pacific was the largest region in the supply chain finance market in 2022.North America is expected to be the fastest-growing region in the forecast period.
The regions covered in supply chain finance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of offerings in supply chain finance are export and import bills, letters of credit, performance bonds, shipping guarantees, and others.An export bill is a document generated by the seller when exporting goods or services, outlining the transaction details, whereas, an import bill is a document presented by the buyer to facilitate payment and verify the transaction when importing goods or services and these are used in supply chain finance to serve as underlying documentation for trade transactions, where export bills, such as invoices or shipping documents, provide proof of the goods being exported, while import bills validate the payment obligation of the importer.
The major providers are banks, trade finance houses, and others that are applied in domestic and international trade applications by large enterprises and small and medium-sized enterprises.
Rise in investment in small and medium-sized enterprises (SMEs) for supply chain finance is expected to propel the growth of the supply chain finance market going forward.Small and medium-sized companies (SMEs) are businesses with sales, assets, or a specific number of employees that are less than a given size.
Supply chain finance allows small and medium-sized enterprises (SMEs) to access larger volumes of bank credit based on the strength and volume of their trade transactions, where these credits are accessible at significantly lower interest rates to navigate working capital challenges and improve their overall financial health to ensures an uninterrupted flow of materials and services from their smallest suppliers to timely delivery of finished goods to their clients.For instance, in June 2021, European Investment Bank (EIB), a Luxembourg-based investment bank, partnered with Intesa Sanpaolo, an Italy-based leading bank.
It allocated $19.39 billion (18 billion euros) fund for small and medium-sized Italian businesses to address and support the industrial supply chains and this scheme would support over 50,000 SMEs, 150 large corporates and mid-caps over the three years. Therefore, rise in investment in SMEs for supply chain finance drives the growth of the supply chain finance market.
Technological innovation is a key trend gaining popularity in the supply chain finance market.Major companies in the supply chain finance sector are focused on innovating their products to strengthen and sustain their position in the market.
For instance, in March 2022, IBSFINtech, an India-based Treasury Tech company providing end-to-end digitization and automation solutions, launched VNDZY (Vendor Management Made Easy), which is an AI-based SaaS platform.This platform offers a connected ecosystem for corporations, suppliers, and financial institutions and addresses all supply chain ecosystem concerns and provides a mutually advantageous platform for all parties.
Additionally, the technology also helps suppliers by shortening the time it takes to process payments, which helps enhance financial discipline.
In May 2022, Clear, an India-based fintech SaaS company, acquired Xpedize for an undisclosed amount.Through this acquisition, Clear is expected to enter the SME (Small and medium-sized enterprises) credit and B2B (business-to-business) payments market.
Xpedize is an India-based supply chain finance platform that delivers access to instant working capital and liquidity.
The countries covered in the supply chain finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The supply chain finance market research report is one of a series of new reports that provides supply chain finance market statistics, including supply chain finance industry global market size, regional shares, competitors with a supply chain finance market share, detailed supply chain finance market segments, market trends and opportunities, and any further data you may need to thrive in the supply chain finance industry. This supply chain finance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
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