ImpactAlpha, April 18 – Standard Chartered, the UK financial services firm, and CDC, the development finance institution, are setting up a fund to help small businesses in Africa and Asia overcome working capital gaps. Small businesses in emerging markets often lack access to traditional lending and credit services. Many face financial pressure waiting 30 to 90 days or longer to receive payment for their products and services. The partners said the fund shows “how blended finance helps boost international trade as an engine for inclusive economic growth and is central to achieving the Sustainable Development Goals.”
- 50/50 split… Standard Chartered and CDC’s fund will invest $150 million over three years.
- Current suppliers… to Standard Chartered’s large business clients will benefit most.
Other efforts to address small business working capital gaps include TriLinc Global Impact, which provides credit and trade financing for emerging markets businesses. Fintech startups like Visor and Tienda Pago in Latin America provide, respectively, credit risk assessment and super short term loans.