Short-term financing, long term impact
IFC helps companies create stronger, more sustainable supply chains with its Global Trade Supplier Finance (GTSF) Program, a $1 billion short-term lending facility.
Competitively priced and highly scalable, GTSF extends affordable short term financing to a client’s supplier network by purchasing and discounting invoices accepted for payment by pre-approved participating buyers. In addition to financing GTSF can be a powerful tool to incentivize suppliers to continuously improve their environmental and social performance.
Clients can contribute to a more sustainable future under GTSF by providing financial discounts to suppliers when they meet targets in areas such as environmental and social compliance, gender equity, and decarbonization.
The better the suppliers’ performance, the more they save – and the more the planet and people benefit.
GTSF in Action
Results
$12.8 Billion
Disbursed to over 2,500 suppliers across 28 countries between 2012 and 2023
60%
Of disbursements in FY2023 were in sustainability-linked facilities
$2.15 Billion
Disbursed to over 350 suppliers in FY 2023
68%
Of disbursements in FY2022 were provided to suppliers in the world’s poorest countries
What we do
GTSF provides short-term financing to suppliers selling to global or domestic corporates by purchasing and discounting invoices accepted for payment by pre-approved participating buyers. IFC provides this financing directly to suppliers via web-based supplier finance platforms or indirectly through financial institutions. By leveraging the credit rating and commercial strength of buyers, GTSF enables access to competitive financing solutions for suppliers, many located in IDA17 countries.
In addition to providing financing, GTSF helps improve the sustainability of global supply chains by offering sustainability-linked pricing that connects receivable discount rates to environmental and social (E&S) performance of suppliers, and by providing advice directly to suppliers on improving compliance with labor and environmental standards, increasing gender inclusion, and developing and implementing decarbonization programs.
Program Structure
Under the program, IFC works with buyers across industries that source goods in emerging markets. IFC can also structure funded or unfunded risk participations with financial institutions that offer supply chain finance and help them increase their presence in emerging markets.
The GTSF Program provides post-shipment finance to suppliers based upon acceptance of receivables by select buyers approved by IFC. This allows suppliers to improve working capital by converting sales receivables to immediate cash and to access lower-cost financing based on the superior credit risk of the buyer. The program also enables emerging market suppliers to finance open account transactions at competitive rates without collateral requirements, and therefore, levels the playing field among larger and smaller suppliers for access to finance.
Main Features
GTSF partners with buyers to broaden access to finance for suppliers, some of whom otherwise would not be able to obtain affordable financing. Participating suppliers have the option to sell their receivables at an attractive discount rate, based on the buyer’s credit strength, after the buyer has approved the receivable for payment.
IFC also mobilizes private capital through GTSF by partnering with banks and credit insurers and helps global supply chain finance platforms to expand their emerging markets coverage.
IFC also provides expertise that enables buyers and participating banks to establish sustainability linked supply chain finance facilities.
Partner programs
Providing incentives for sustainability is just half the challenge. IFC pairs GTSF’s financial incentives with best-in-class advisory programs that help clients make progress in the fields of energy efficiency, waste-waster treatment, emissions reductions, labor practices, gender smart workplaces, and more. Our programs include:
