IFC’s First Supplier-Finance Facility with Mexican Food Retailer Will Expand Access to Finance for SMEs
Washington, D.C., June 12, 2012—IFC recently launched its first supplier-finance facility with Mexican food retailer, Tiendas Comercial Mexicana, that will promote broader access to finance for a large number of Mexican suppliers, especially to underserved SMEs.
IFC will provide a credit line to enable TCM’s small and mid-size suppliers to access up to $100 million in financing.
Through the new IFC Global Trade Supplier Finance program, more than 400 SMEs that are TCM suppliers will be able to receive faster payments for goods they deliver to the retailer and use receipts for their goods to obtain immediate payment from IFC. TCM will reimburse IFC within a short period. This provides working capital directly to the suppliers.
The $500-million IFC Global Trade Supplier Finance program is a joint investment and advisory initiative that provides short-term finance in multiple currencies to emerging-market suppliers and small and midsize exporters.
IFC’s financing will be implemented through PrimeRevenue, a supply-chain finance platform, and its local reseller in Mexico, E-Factor Network.
Under the program, IFC also helps banks that offer supply chain financing to increase their presence in emerging markets.
The facility will help improve the competitiveness of the local economy and the financial sustainability of the overall retail supply chain in Mexico.