The International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC) have launched a $500 million supply chain finance facility to expand access to working capital for small and medium-sized enterprises (SMEs) in emerging markets.
The facility will allow suppliers, many of them SMEs, to receive early payment on approved invoices by leveraging the financial strength of large corporate buyers rather than the suppliers’ own credit profiles.
IFC will provide up to $250 million in direct funding, with SMBC contributing the remaining $250 million on equal terms. The partnership is expected to enable SMBC to reach more suppliers with longer financing tenors and higher transaction volumes.
The first anchor buyer under the programme is a large food manufacturer in Latin America, with the facility designed to expand to other buyers, sectors and markets.
IFC said the model could help address a persistent financing constraint facing smaller businesses in emerging markets, many of which struggle to access formal credit because they lack established financial records.
“Supply chain finance is one of the most effective tools to put working capital directly in the hands of small businesses in emerging markets, quickly, affordably, and at scale,” said Nathalie Louat, Global Director for Trade and Supply Chain Finance at IFC.
She said the partnership would allow IFC and SMBC to reach suppliers that conventional markets may not serve, providing liquidity while helping businesses build the financial history needed to access wider banking services.
Priyamvada Singh, Global Head of Sales, Global Trade Finance at SMBC, said the partnership would strengthen the bank’s ability to provide working capital solutions to suppliers and support the resilience of global supply chains.
The facility was structured through IFC’s Global Supply Chain Finance programme, which has supported more than $3.8 billion in supplier finance transactions since its launch in 2023.
