In a globalizing economy, supply chains are becoming more complex, including more countries and suppliers (Hieminga, 2012). Such chains involve a complex string of (financing) arrangements and interdependencies between suppliers, buyers, banks and logistics service providers (Hurtrez & Gesua’ sive salvadori, 2010). This presents a challenge of sharing data, which has no common interface to be shared with (Hofmann, 2013). While the integration of supply chain for flow of goods is recognized but the same is not done for financial flows(Protopappa-Sieke & Seifert, 2010). Due to inefficient intercompany processing methods, a lot of amount goes unutilized . (Roubert, 2013) claims in his study an excess of working capital of more than €200 billion due to poorly managed payment terms and delays in France alone. Companies need to obtain credit to solve this problem. Whereas large corporates often are ‘investment grade’, their suppliers face high financing costs with credit rates rising hugely as the distance from their large, credit-worthy end buyers increases (NG, 2013). Such financial inefficiencies are increasingly becoming a strategic risk factor in supply chain management, for example, due to bankruptcies of suppliers.Lack of cash could prompt supplier not to produce at its full capacity. It can be taken from the case of Caterpillar. Due to lack of funds available to Caterpillar suppliers, they were not able to produce raw material required to Caterpillar. Thus the demand fulfillment of Caterpillar was impacted by this.During the market crisis of 2008, many companies adopted aggressive methods to maintain their cash level. One aspect of these new cash management strategies included extending payment terms with their suppliers.Companies have continued to push payment terms so that they could use the free cash for further investment (NG, 2013). There is a growing focus on how cooperation at a financial level with suppliers can contribute to reducing working capital. Example could be of a large manufacturer using its credit rating and financial strength to allow low-interest credit to its suppliers. For its suppliers, this could improve access to finance. These collaborative models are called supply chain finance models (Templar, Cosse, Camerinelli, & Findlay, 2012). The most common form discussed in the vast majority of publications whether popular or academic is reversed factoring. Large companies have turned to reversed factoring solutions over the past 5 years as evidenced in publications about its application at Philips, Inditex, Volvo, Walmart, Unilever and Motorola (Blackman, Holland, & Westcott, 2013b; Bozdogan, 2010; Seifert & Seifert, 2011; Steeman, 2012; van Woelderen & Witteveen, 2008).With the coming up of innovation in financing methods, there has been a fulfilment in the need of finance in supply chain functions through innovative ways. Procurement in supply chain finance requires a strong relation between supplier and buyer. Earlier with no innovation in finance methods, the liquidity was affected due to having no smart contract between supplier and buyer. With companies now inventing innovative ways to make their supply chain effective, financing was one thing that was untapped and has a huge potential to further streamline the supply chain. Thus came the concept of Supply Chain Finance (SCF) Supply chain finance is a supplier finance, it optimizes cash flow by lengthening the payment terms of businesses to suppliers, which giving an option to suppliers to get paid early. With this flexibility option now available, businesses have a got a new avenue to do more with limited funds. Supply chain finance not only gives a new shape to supplier – buyer relation, but also gives new business dimensions to finance company. Thus finance company have got a new avenue to increase their business dimension.In 2009, the supply chain become a buzzword. And the demand of SCF is expected to grow further. However analysis of financial institutions shows that after year of explosive growth in supply chain it is slowing down. This behaviour can be attributed to it being a risky area. The risks begins at the start of production design. Therefore, for banking industry to further tap this market it has become imperative to find ways to mitigate risk and find new ways to facilitate SCF. (Leng, Jian Fei. Gao, Xu. & Chen, YinMei (2015) “Supply Chain Financing Researchof G Bank”, Journal of Applied Finance & Banking, vol. 5, no. 5, 2015, 91-98).