Business Linkages

Supply-chain linkages improve access to finance for small and medium enterprises (SME) in emerging and transition economies. In linkage projects, the high credit risk of SMEs is mitigated by their business relationships - as suppliers or buyers—with one or more larger, financially strong companies. This allows financial intermediaries to extend loans to SMEs that would not qualify based on standard criteria for credit risk.

Often, linkage projects are an important feature for IFC's large investment projects in impoverished regions. These projects can have a profoundly positive development impact in frontier markets. IFC designs funding mechanisms for financial intermediaries and provide technical assistance to all parties involved.

For further information on the business linkages program, contact
Reinhard Reichel | T: 202.458.9036