IFC and TradeCard Partner to Deliver Liquidity and Sustainability

Program helps suppliers obtain cash faster and reduce capital related risk while promoting supply chain sustainability at brands & retailers

New York, N.Y.Aug. 8, 2012—Supply chain collaboration and global trade platform provider TradeCard Inc. partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to help suppliers in emerging markets obtain access to capital. The IFC’s Global Trade Supplier Finance (GTSF) program helps suppliers on the TradeCard Platform obtain cash faster and reduce capital related risk by discounting their receivables.

“Financing production cycles can drain the working capital and borrowing capacity suppliers need to operate their business,” said Georgina Baker, Director of Global Trade and Supply Chain Solutions, IFC. “Through TradeCard, we’re delivering non-recourse early payments to suppliers in developing countries without drawing down their bank credit lines. These suppliers can use the Global Trade Supplier Finance program to access much-needed financing and grow their business while effectively managing risk.”

The GTSF program is integrated directly into the supplier’s existing sale-to-cash process on the TradeCard Platform. When suppliers submit an eligible invoice they have the option to receive early payment at a modest discount, with the click of a mouse. There is no paperwork or processes to manage and payment is made three business days following payment approval by the buyer.

“Having access to capital without impacting our credit lines directly supports our business growth initiatives,” said Jinxu Gao, President of Qingdao Qitian Garment Co. Ltd., one of the first suppliers based in China to partner with the GTSF program. “By working with IFC through the TradeCard Platform we can better plan and forecast our business. We know with certainty that payment will arrive within days of the buyer approval.”

“For brands and retailers, this is a unique opportunity to partner with IFC and the World Bank Group to create a sustainability roadmap for their supply chain,” said Kurt Cavano, Founder, Chairman & Chief Strategy Officer of TradeCard Inc. “Through this program, trading partners can obtain better financing rates by working towards social and environmental compliance standards. The program helps brands and retailers ensure they produce goods that won’t harm our planet or its inhabitants. It allows suppliers in emerging regions to gain access to capital to capitalize on growth opportunities and better compete in the global marketplace. For workers in those factories, it means safe working conditions and a sound employment environment.”

Through the program, suppliers can:

  • Improve cash flow with faster irrevocable payments
  • Improve balance sheets by removing receivables earlier
  • Reduce Days Sales Outstanding
  • Free up credit lines
  • Minimize foreign exchange rate risk
  • Free registration and simple start-up
  • Click for cash: TradeCard integrates early payment into the transaction, providing seamless access to an alternative source of capital
  • Choose to participate in one of three models: programmatic, invoice-by-invoice or seasonally

“During the start-up phase of GTSF, we found that many SME suppliers had insufficient access to information on innovative types of working capital financing, such as supplier finance,” said Toshi Masuoka, Director of the Inclusive Business Models Group at IFC. “We are working to ensure that a maximum number of SMEs can take advantage of products such as GTSF.”