Industry Perspectives: How supply chain finance is evolving for uncertain times

Global trade volatility and geopolitical tensions are shifting the focus of supply chain finance from simple working capital optimization toward operational resilience and flexibility. Corporates are increasingly seeking bank-agnostic funding structures and rapid supplier onboarding to mitigate risks associated with liquidity pressures and fragmented trade corridors. This evolution is driving demand for specialized solutions that offer faster implementation and favorable accounting treatments under international standards.

Orbian, a supply chain finance provider originally formed as a joint venture between Citibank and SAP, reports a significant shift in corporate priorities due to rapid changes in trade policies and geopolitical conflicts. Simon Allen, Orbian’s director of origination for the EMEA region, notes that companies are moving away from single bank-led programs toward more agile structures like Express-SCF, which can onboard suppliers in just two days regardless of jurisdiction. This speed is achieved through a unique capability developed in 2018 that eliminates the need for suppliers to sign formal agreements or assign receivables, addressing the gaps often left by traditional banking providers that may take up to a month for onboarding.

To address immediate liquidity needs without increasing financial debt, the firm highlights its Flex Pay solution, a deferred payment tool described as a sprint compared to the marathon of traditional SCF. A critical advantage of this treasury-led solution is its accounting treatment; it is classified as other payables under IFRS rather than net financial debt, a status approved by the Big Four auditors. This favorable treatment, supported by industry opinion papers, allows treasurers to access liquidity through their own balance sheets while maintaining healthy ratios, making it a strategic tool for reacting to sudden market shifts.

The sector is also seeing a move toward bank-agnostic funding models to ensure supply chain continuity if a single lender withdraws from a specific market or buyer. Orbian utilizes a Special Purpose Vehicle (SPV) structure that allows multiple banks to finance early payments simultaneously, providing a more resilient alternative to syndicated programs that rely on a single lead bank. Amidst this demand, Orbian is expanding its footprint through the acquisition of the Czech payment institution Roger and the opening of a new office in Prague, while noting that higher interest rates are actually driving higher supplier participation as SCF rates remain competitive against traditional bank lending.