The Global Supply Chain Finance (GSCF) program was established by IFC in 2022 as a tool to help address the emerging market finance gap 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. 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 accessing finance.
The program allows emerging market suppliers to improve their working capital by converting receivables into cash and to finance open account transactions without collateral requirements.
The program also works with partner financial institutions to promote gender inclusive and sustainable supply chain finance, and offers advisory services that enhances financial access for small and medium enterprise (SME) suppliers.
Program Structure
GSCF provides financing through financial institutions via risk participation (funded or unfunded) on a portfolio basis through risk sharing facilities. A primary focus of GSCF is on reverse factoring (supplier finance).
Shipping containers in the Port of Lomé. Photo: World Bank/Torie Smith