Supply chain financing, SCF, is a financing and accounting tool that businesses use to help with cash flow by extending payment terms with suppliers. As a part of these financing agreements, banks provide funding to pay a company’s supplier of goods and services. In exchange, the supplier agrees to receiving less money in exchange for earlier payment.

In the S&P 500 index, 80 companies offered and reported two full fiscal years of financial data on their SCF programs. Using our CompanyIQ SEC Disclosures research platform, we analyzed these supplier financing arrangements for FY2022 and FY2023.

Among our findings:

• The average value of the FY2023 SCF programs was $866 million.
• The size of these programs ranged from $3 million to $8.6 billion in FY2023.
• Half of companies saw an increase in the value of their SCF programs from FY2022 to FY 2023.
• General Electric reported the largest program in FY 2023 at $8.6 billion.

Read more by accessing the report below.