- Demica to provide technology platform to IFC – focused on improving suppliers’ environmental and social standards
Demica to provide technology platform for IFC’s Global Supplier Chain Finance – focused to improve suppliers’ environmental and social standards.
Demica, one of the largest independent providers of working capital solutions, today announced that its supply chain finance platform will be used to support IFC’s Global Trade Supplier Finance program. Demica’s state-of-the-art Supply Chain Finance platform and its Supplier Onboarding Tools will help enhance the global reach of IFC’s program, which links funding rates to how well suppliers’ meet environmental and social standards.
“We are excited to work with Demica for the next stage of development of our supplier finance program,” said Farzin Mirmotahari, IFC Senior Operations Officer working with the supplier finance program. “By combining IFC’s experience in emerging markets with Demica’s technology and product expertise, we aim to accelerate sustainable practices.”
Demica’s payables finance platform will be used by IFC’s program, which since 2012 has disbursed about US$4.7bn to some 1,000 suppliers across 18 countries via web-based supplier finance platforms or indirectly through financial institutions. IFC is a member of the World Bank Group.
“IFC’s program allows corporate buyers to extend Supply Chain Finance deeper into emerging markets, where very often banks are unable or unwilling to provide financing to suppliers,” Maurice Benisty, Chief Commercial Officer of Demica, said “Demica and the IFC are fulfilling a gap in the market, improving the practices and relationships between buyers and suppliers.”
IFC’s Global Trade Supplier Finance program, known as GTSF, helps address the shortfall in access to finance for small and medium-sized enterprises by providing short-term working capital and the interest rates are linked to sustainability standards in order to promote better environmental and social practices.
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IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19bn in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
Demica is an award-winning Fintech providing working capital solutions to medium to large corporates and banks with a broad range of payables, receivables and inventory finance products. The company focuses on multinational clients all over the world, across industries and sectors. Growing at 40% per year, today Demica’s platform manages working capital programs for over 400 corporates with total funded programs of over $15bn. In 2019, Demica has won 4 prestigious industry awards including Global Finance Supply Chain Provider of the Year.