IFC steps up boost for apparel sector with Trade Supplier Finance for MAS Active
Thursday, 7 November 2013 00:00
-
- {{hitsCtrl.values.hits}}
IFC, a member of the World Bank Group has partnered with local apparel manufacturer MAS Active to boost trade opportunities for Sri Lanka’s apparel industry through a trade supplier finance facility.
IFC’s Global Trade Supplier Finance program will provide a supplier finance credit line to MAS Holdings. This means IFC will provide loans to MAS against receivables payable by selected international buyers.
“In the fast-changing globally competitive apparel industry, suppliers like MAS need to continuously strengthen flexibility and responsiveness, while managing costs. IFC’s trade supplier finance program brings greater flexibility to MAS Active’s operations while enhancing liquidity of the company,” said MAS Holdings Group Finance Director Sudarshan Ahangama.
Supplier finance is a scalable and manageable way for suppliers in emerging markets to avail of affordable financing against receivables from customers for the period of the credit given to the customer. The product offers suppliers an additional source of flexible, affordable funding and may allow the buyer to negotiate longer payment terms or better prices.
“Financing production cycles can drain working capital and borrowing capacity that suppliers need to operate their businesses,” said IFC Director for Global Trade and Supply Chain Solutions Georgina Baker.
“Through IFC’s trade supplier finance program, suppliers like MAS Holdings will be able to access much-needed financing and grow their business while effectively managing risk,” Baker added.
Established in 2010, the IFC Global Trade Supplier Finance program is a $ 500 million multicurrency investment and advisory program that provides short-term finance to emerging market suppliers and small and midsize exporters.
The program also helps banks that offer supply chain finance increase their presence in emerging markets.
