Instrument library
Trade & supply chain

Anchor Buyer-Backed Facility

A large institutional buyer backstops a credit facility by confirming purchase commitments. Investor lends against the offtake contract.

How it works
The anchor buyer (e.g. Aga Khan, Gertrude's) signs a confirmation of intent. Investor extends a facility sized to the contract value, repaid as the buyer pays the SME.
Best for

Suppliers with locked-in institutional buyers but a thin balance sheet.

offtake contract
anchor buyer
working capital
thin balance sheet

Related in Trade & supply chain