The Global Supply Chain Finance (GSCF) was established in 2022 to bridge the finance gap in developing economies by providing supply chain finance (SCF) to emerging market suppliers.
GSCF provides short-term financing to suppliers engaged in transactions with domestic and international buyers. The program also works with partner financial institutions to promote green supply chain finance and offers advisory services that enhances financial access for small and medium enterprise (SME) suppliers.
GSCF expands financing options for both investment and non-investment grade buyers, including those traditionally considered non-bankable. This is especially beneficial for underserved SMEs that encounter significant challenges in access to finance.
Program Structure
GSCF provides financing through financial institutions via risk participation (funded or unfunded) on a portfolio basis through risk sharing facilities.
Instruments
A primary focus of GSCF is on reverse factoring (supplier finance).
Development Impact
- The program allows suppliers to improve working capital by converting sales receivables into cash. This helps optimize cash flow and provides access to critically needed working capital.
- The program enables emerging market suppliers to finance open account transactions without collateral requirements.