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The supply chain finance opportunity

Supply chain finance (SCF) offers high-quality, low-risk financing to the small merchants that tend to be underserved by traditional lenders. These microentrepreneurs often lack the credit data traditional lenders need and are seen as too costly to serve at scale. SCF leverages data generated by businesses when they buy from suppliers and sell to customers, using this information to evaluate the creditworthiness of small merchants. It is a useful tool to expand financial inclusion for the 141 million microenterprises in developing countries and to promote inclusive economic growth globally.  

SCF benefits merchants with timely access to credit; it also benefits merchants, suppliers, and fast-moving consumer goods companies (FMCGs) with higher sales, faster turnover, and more efficient operations. Lenders benefit as well: SCF reduces risk and costs, allowing financial service providers (FSPs) to cater to new markets.

This brief by Accion discusses how SCF platforms can help small merchants, FMCGs, suppliers, and FSPs realize their economic potential.

Accion
Our vision is to build a financially inclusive world with access to economic opportunity for all. Our mission is to give people the financial tools they need to improve their lives. Accion has proven time and time again that financial services can be made available; that individual lives and the prosperity of communities can be significantly enhanced; and that this can be done at scale and sustainably. Our work helps people, small businesses, and communities grow and thrive. We challenge and engage the industry, its leaders, and its regulators to achieve a financially inclusive world.

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