(14 January 2026 – Global) During a challenging period for supply chain management buffeted by tariffs, logistics disruptions and China Plus One initiatives, banks have emerged as a vital link with inventory finance solutions now sharply in vogue.
Kimberley Long reports for The Banker that it can take an importer up to three years to settle on a new supplier, but those who work with banks that have strong trade finance capabilities and an international footprint can shorten this time by up to 10 months.
Inventory finance can help corporates bridge long or uncertain lead times, with firms borrowing against the goods in transit or in the warehouse.
Financing against inventory can also help the buyer to pay suppliers, without affecting working capital.
Santander, DBS and JPMorgan have seen inventory finance demand increase during 2025 however it is unlikely it will become ubiquitous.
“Inventory finance is a complex solution compared with other trade finance instruments. There isn’t a standardised, commoditised inventory finance solution in the market that any bank can offer in the same way there is for receivable financing or supply chain finance. It needs to be customised for an individual supply chain” commented JPMorgan Global Head of Trade and Working Capital Sales, Natasha Condon.
“CFOs and treasurers display increasing inventory finance demand globally according to East & Partners Trade & Supply Chain Finance research in multiple markets – these results resonate strongly with our long term analytics” commented East & Partners Global Head of Markets Analysis, Martin Smith.
“Inventory finance usage increased 80 percent over the last three years among the Top 1000 Asia institutional enterprises and 17 percent year-on-year among the Top 500 Australian institutional enterprises as a proportion of overall supply chain finance volumes which continue to trend higher”