519Funds Flow along the Supply Chain
• Another type of long-term debt is to cover expansion of a retailer’s new stores.
These can be secured directly by a lien on the store or based on the nancial con-
dition of the company.
• Sometimes customers provide nancing to suppliers by lending money to the
supplier to buy materials or add capacity to meet the customer’s needs.
There are many variations of these. All of these methods existed before the modern-day
supply chains were developed.
Supply Chain Finance
Supply chain nance was described in the Company Prole at the beginning of this
chapter.
In recent years, banks have also become more active in SCF. SCF is a new concept that
is getting closer attention. Banks are interested because it offers ...