The Asian Development Bank (ADB) and Citi have announced a partnership aimed at improving access to supply chain financing for small- and medium-sized enterprises (SMEs) in the Asia-Pacific region. This collaboration aims to provide SMEs with the necessary financial resources to support their growth and competitiveness.
Supply chain financing is a type of financing that allows businesses to optimize their cash flow by delaying payment to their suppliers until they receive the funds from their customers. This arrangement allows SMEs to bridge the gap between their procurement needs and their own financial resources.
Recognizing the significant role that SMEs play in driving economic growth and job creation, ADB has consistently prioritized their support for these businesses. Through its investments and technical assistance, ADB aims to enhance the capacity of SMEs to access finance, expand markets, and increase productivity.
Citi, a global financial institution, has a strong presence in the Asia-Pacific region and expertise in supply chain finance. Through its global network and strong relationships with both SMEs and large corporates, Citi is well-positioned to facilitate the provision of supply chain financing solutions to SMEs.
The partnership between ADB and Citi will focus on establishing a comprehensive supply chain financing program that will be accessible to SMEs in ADB’s developing member countries. The program will include the following key components:
ADB and Citi will collaborate to develop tailored financing solutions specifically designed for SMEs. These solutions may include invoice discounting, supply chain finance, and receivables finance, among others.
ADB will provide technical assistance to help SMEs improve their financial management and creditworthiness, making it easier for them to access supply chain finance.
ADB and Citi will work together to connect SMEs with buyers, suppliers, and other market participants, creating stronger supply chains and facilitating trade growth.
ADB will support capacity building initiatives to enhance the skills and knowledge of SMEs in supply chain finance and financial management.
The partnership between ADB and Citi represents a significant step towards improving access to supply chain financing for SMEs in the Asia-Pacific region. By working together, ADB and Citi aim to provide SMEs with the financial resources they need to grow and thrive, ultimately contributing to the region’s economic development.