Supply Chain Finance
The supply chain finance (SCF) business of ADB’s Trade and Supply Chain Finance Program (TSCFP) aims to reduce financing gaps faced by small- and medium-sized enterprises (SMEs) to help them become part of the global trading system.
These efforts support growth in ADB’s developing member countries (DMCs) in a number of ways: they broaden private-sector support for supply chain finance; improve cash flow to DMC companies to enable growth and job creation; allow companies traditionally not considered bankable to receive financing and; produce a demonstration effect that encourages financial institutions to undertake more supply chain financing.
TSCFP provides funded and unfunded risk participations and guarantees through its partner financial institutions (PFIs), as well as by direct loans by ADB to obligors, to enhance the access of SMEs to working capital for supply chains.