Ebook “Shortening the cash cycle – Proactively seizing business opportunities” by Bizzi Vietnam focuses on solving the working capital challenge that many Vietnamese businesses are facing, especially due to Cash Conversion Cycle (CCC) Lengthened 67 days on average. This cycle shows that businesses are tied up in receivables and inventory, leading to “erosion” of profits, destabilizing the supply chain and missing business opportunities.
To solve this problem, the ebook introduces Supply Chain Finance (SCF) Solution. SCF is a set of technology and financial solutions to optimize cash flow, leveraging the creditworthiness of the buyer (Anchor) to provide capital at a lower cost to suppliers (Supplier).
Key benefits of joining SCF include:
- For Suppliers: Convert receivables into cash sooner, access capital easily without collateral, allowing for quick reinvestment.
- For Core Business (Anchor): Reasonable extension of payment terms without putting pressure on suppliers, stabilizing supply chains and tightening partnerships.
The ebook also emphasizes The important role of technology in SCF platforms. Technologies such as data system integration (API/EDI), e-invoice data mining, AI/ML credit scoring and Blockchain help automate processes, increase transparency, control risks and connect stakeholders effectively. Bizzi Financing's SCF platform is an example, helping to connect Anchor, Supplier and Funder, optimize working capital and reduce financial risks across the entire supply chain.
