MODERN UNDERSTANDING OF SUPPLY CHAIN FINANCE

Abstract

In the 21st century, supply chain finance (SCF) has transformed from a set of transactional financial instruments into a comprehensive strategic ecosystem that integrates liquidity management, digital technologies, sustainability principles, and modern risk management approaches. This article analyzes the evolution of the SCF concept—from traditional financial practices such as factoring to intelligent digital platforms that leverage artificial intelligence algorithms and incorporate ESG criteria. The study highlights SCF’s capacity to ensure the flexibility of financial flows, strengthen financial resilience, and enhance the competitiveness of companies within global supply chains under increasing economic volatility, inflationary pressure, logistical disruptions, and geopolitical tensions. The core SCF instruments are systematized, including reverse factoring, dynamic discounting, inventory financing, and pre-shipment financing, with a detailed characterization of the digital ecosystems that support these mechanisms. Particular attention is paid to the integration of environmental and social responsibility principles, especially ESG factors, into the implementation of SCF programs. The paper examines the role of digital platforms such as Taulia, Kyriba, Tradeshift, and C2FO in improving transparency and the speed of financing across supply chains. It is shown how the inclusion of ESG indicators in SCF initiatives influences financing conditions for suppliers, particularly for small and medium-sized enterprises. The importance of government support for SCF in developing regions is emphasized, with the example of India’s TReDS platform analyzed in detail. The scientific novelty of the study lies in the development of a multidimensional analytical framework for interpreting SCF as a systemic component of modern financial infrastructure. The methodological basis combines a systems approach and logical-analytical reasoning with structural analysis, comparative evaluation of international case studies, and synthesis of relevant academic and industry sources. The practical value of the findings lies in their applicability to the digitalization of corporate financial processes, the formulation of sustainability strategies, and the management of supply chains in light of emerging global challenges. The research is of interest to specialists in corporate finance, supply chain management, digital transformation, sustainable development, as well as scholars studying the interplay between finance and strategic management in times of global uncertainty.