More Working Capital Resources on the Way in Poland 

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Working capital is a top priority these days given the multi-directional assault on balance sheets from inflation, rising weighted average cost of capital (WACC), and ongoing supply chain disruptions. This is particularly dear to SMEs, which have a more challenging time accessing credit to temporarily fight off short-term difficulties.   

We have written about working capital for members and posted here consistently about the issue.  We are looking at the referred announcement at GTR (Global Trade Review). The European Bank for Reconstruction and Development (EBRD) is collaborating with a subsidiary of Santander Bank Poland. They are offering a creative new framework to provide supply chain finance access to a ubiquitous franchiser in Poland.  

The firm, called Zabka, operates thousands of franchised convenience stores around Poland. Customers pay Zabka suppliers faster “supported by the EBRD’s unfunded risk participation worth up to PLN 225mn (€47mn)” using the program framework. Since most of Zabka’s suppliers are SMEs, this fits into a dire market need.   

Zabka has broader ambitions to expand its market presence and range of services.  The EBRD seems to be testing this framework for broader potential application for creditworthy businesses across the range of markets that it services in central and eastern Europe.   

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group.

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