Supply Chain Financing

Definition ∞ Supply chain financing is a set of financial solutions that optimize the flow of capital and improve liquidity for businesses involved in a supply chain. It typically involves third-party funders providing early payment to suppliers based on approved invoices from corporate buyers. This mechanism helps manage working capital and reduce financial risk for all participants.
Context ∞ In crypto news, supply chain financing is increasingly discussed as a significant application area for blockchain technology, with platforms aiming to enhance transparency, efficiency, and accessibility of funding. The tokenization of invoices and other supply chain assets is a key development in this sector. Regulatory frameworks and the integration with existing financial systems remain central topics of debate for broader adoption.