Supply chain finance is a type of financing that allows you to use the inventory in your supply chain as collateral for a loan. The idea behind this approach is that if you sell an item, the buyer will pay for it before they receive it — and then, once they receive it, they will pay off the loan. As long as there are enough buyers who are willing to do this, you can use supply chain financing to unlock capital without having to sell any assets (such as equipment or property) or take out any other form of debt.