Supply Chain Finance Diagnosis

     IFC, the private arm of the World Bank group held a webinar on September, 6^th 2022 to disseminate the findings and recommendations of the Supply Chain Finance (SCF) Diagnosis in Lebanon, launched early 2021 with the aim to exploring the barriers to the improvement of the enabling environment.

Supply Chain Finance is the use of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in supply chain processes and transactions.

In the context of Lebanon’s multiple crises since October 2019, that have hurt all businesses, especially MSMEs, and led to a sharp and swift decline in the economy, SCF can help close the finance gap among MSMEs through the alternative approach to asset-based lending. SCF provides business and financial benefits to all parties involved (banks, sellers, buyers and the regulator), hence improves the system in whole. 

This webinar has provided an overview of motivations to engage in a SCF mechanism and explain the various approaches. Further it will summarize IFC’s market assessment of the environment and potential for SCF and asset-based lending in Lebanon. 

PDF