Manufacturers need capital to expand and upgrade their operations, but often face high interest rates to compensate banks for high risks. IFC promotes access to finance through innovative programs to provide short-term working capital or trade finance, as well as direct investments in companies. IFC programs and platforms help global buyers support their suppliers through guarantees.
GTSF program helps textile suppliers better manage working capital and quickly free up cash, including for fire safety improvements. The program offers post-shipment finance to suppliers based upon acceptance of receivables by select buyers approved by IFC. This way, suppliers can convert sales receivables to immediate cash and gain access to lower-cost financing.
Priya Singh, former IFC's Global Product Head, explains how the GTSF program works.
IFC has developed a way to offer fire and building safety financing, which allows suppliers in Bangladesh to obtain IFC financing with longer maturities backed by a corporate guarantee from committed international buyers. VF Corp brand owner of Wrangler, Timberland and North Face, an investment grade buyer, is the first global buyer to participate in offering this type of financing to its suppliers.
Farzin Mirmotahri, IFC's Supply Chain Finance Product Specialist, explains how supplier on-boarding program works.
IFC can invest directly in apparel manufacturers with sufficient capacity to meet IFC Performance Standards.