Which of the following is a way Finance supports the Procurement Team?

• A. Market research
• B. Favourable Credit Terms
• C. Customer service
• D. Brand management

Answer: (B)

Finance supports the Procurement Team by managing working capital and payment terms, helping ensure purchases can be made smoothly without tying up too much cash. Arranging favourable credit terms means the organization can delay payments to suppliers within an agreed period, improving cash flow and reducing the need for short-term borrowing. This arrangement also gives procurement greater flexibility to secure necessary goods or services in the right quantities and at the right times, sometimes enabling better negotiations or volume purchases. Trade-offs exist, such as potential penalties or strained supplier relationships if terms are misused, but the core finance lever is leveraging payment terms to support procurement.

Market research, customer service, and brand management are more aligned with other functions (such as procurement sourcing, operations, and marketing) rather than the core way Finance directly supports procurement.