SCF and factoring are two different solutions. Sometimes, a CFO tell us (s)he doesn’t need SCF, since the company already has a factoring facility in place. While both solutions solve the same problem (optimizing working capital), they are very different form each other. Let’s see how.Before we get to the point — let’s make sure we’re aligned in terms of terminology, using ABC Company as an example.Payables vs Receivables, AP vs ARABC Company has vendors and customers.When a vendor of ABC invoices it, this invoice becomes an ABC payable.When ABC invoices a …
