Supplier finance programs run by large US buyers

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Large US buyers can let their suppliers sell approved invoices to a bank before the due date. This guide sets out what is public about such programs for suppliers in Mexico, what to check before joining and what to use when a buyer has no program.

Published October 23, 2026 · Facts as of October 23, 2026 · 10 min read · Sources listed at the end · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

US$500mIFC and Citi facility for suppliers in Mexico, signed August 5, 2024, the first project in a US$2 billion program ¹

95%Share of Mexican private firms that are small and medium-sized, many with limited access to bank credit ³

360 daysLongest term on Nafin's Cadenas Productivas supplier platform, in pesos or US dollars ^5,6

90 daysMoody's "reasonable upper limit" for a buyer to repay a program's financier, as reported by GTR ⁴

What is it?

A supplier finance program is set up by a large buyer with a bank. The buyer approves the supplier's invoice, and the supplier can sell it to the bank before the due date ². In Mexico, suppliers reach such programs through a buyer's bank or through Nafin's Cadenas Productivas ⁵.

Why does it matter?

Many Mexican importers pay 30 to 45 days late, and about 95% of private firms are small and medium-sized firms with limited access to credit ³. A program prices early payment on the buyer's credit profile instead of the supplier's own ¹³.

How does it work?

The supplier ships, issues its CFDI and waits for the buyer to approve the invoice. It then chooses whether to sell the invoice to the bank, which pays a discounted amount now. The buyer pays the bank at maturity ².

In this guide

1. What is a buyer-run supplier finance program?
2. Which programs can a Mexican supplier use?
3. How does a supplier in Mexico get paid early?
4. What does it cost, and what should a supplier check?
5. Where does a buyer program fit in the supplier's cash cycle?
6. What happens if the buyer changes or ends its program?
7. What should suppliers watch next?

01What is a buyer-run supplier finance program?

In a supplier finance program, a large buyer confirms that it will pay a supplier's invoice on its due date. A bank or other finance provider then offers to buy that approved invoice early, at a discount. The buyer pays the finance provider at maturity. The Trade Finance Guide explains the structure under payables finance. It is also called reverse factoring, or factoraje inverso in Mexico.

Two features matter most to a Mexican supplier. First, the cost of early payment follows the credit of the anchor buyer. Nafin's program, for example, sets its rates on the anchor's credit profile ¹³. Second, the sale is the supplier's choice. On Citi's program for Walmart suppliers, the supplier can hold the buyer's trade acceptance or sell it to Citi without recourse ².

Mexican suppliers need the cash. The US Commercial Service reports that many Mexican importers pay 30 to 45 days late on existing contracts. It also says about 95% of private firms are small and medium-sized firms with limited access to bank credit ³.

02Which programs can a Mexican supplier use?

No public announcement was found of a supplier finance program that a US retailer, technology firm or vehicle maker runs specifically for its suppliers in Mexico. A supplier should ask the buyer's purchasing or treasury team whether a program exists and whether suppliers invoicing from Mexico can join.

What is public falls into three groups. Some US buyers run programs through banks. Citi's page for Walmart suppliers describes a trade acceptance that suppliers can sell to Citi. The page does not say which countries the program covers ². Reuters reported in May 2020 that GM had run an early payment program with Wells Fargo since August 2019, and that Ford also used a bank program ⁷. Neither report gives terms for suppliers in Mexico. Walmart de México's public supplier material covers recruiting suppliers. In April 2023 it said it bought 89.12% of its merchandise in Mexico. It does not describe a payment program ⁹.

Development finance has also reached the corridor. On August 5, 2024, IFC and Citi signed a US$500 million sustainable supply chain finance facility for suppliers in Mexico. It was the first project in a US$2 billion program, and the buyers were not named ¹.

Mexico's own banks cover suppliers without a buyer program. Nafin's Cadenas Productivas lets suppliers of large private firms and governments sell approved invoices without recourse, in pesos or US dollars, for up to 360 days ^5,6. In July 2023, Bancomext announced loans for auto suppliers based on the supplier's contract with a vehicle maker ⁸. Our guide to Mexico's development banks covers both.

Compare

Public supplier finance options for suppliers in Mexico

Public examples found for this guide. None is a US buyer program announced specifically for suppliers in Mexico. Sources: IFC, Citi, Nafin, Automotive News, Cluster Industrial ^1,2,5,6,7,8.

Program	Who runs it	What is public	Date
Citi program for Walmart suppliers	Citi, for a US retailer	Supplier holds or sells a trade acceptance to Citi, without recourse, at Citi's discretion. Countries covered not stated 2	Undated page
GM and Ford bank programs	US vehicle makers with banks	GM early payment program with Wells Fargo from August 2019; Ford also used a bank program 7	May 2020 report
IFC and Citi facility	IFC with Citi	US$500 million for suppliers in Mexico; buyers not named; first of a US$2 billion program 1	Aug 5, 2024
Nafin, Cadenas Productivas	Mexico's development bank, through banks	Suppliers of large firms and governments sell approved invoices without recourse; pesos or US dollars; up to 360 days 5,6	Undated pages
Bancomext auto supplier loans	Mexico's export bank	Working capital and tooling loans based on the supplier's contract with a vehicle maker 8	Jul 7, 2023

About 95% of Mexico's private firms are small and medium-sized, and many have limited access to bank credit, according to the US Commercial Service.

03How does a supplier in Mexico get paid early?

The steps follow the buyer's program. Three points are specific to a supplier in Mexico.

First, the invoice must be clean. The supplier issues a CFDI, the Mexican electronic invoice, and the buyer approves it in its own system. A deduction or a quality claim can hold up approval, as our guide to deductions, chargebacks and disputes explains.

Second, the bank decides each purchase. Citi's page says it buys trade acceptances "at Citi's discretion" ². Plan cash for the case where a purchase is declined.

Third, the sale is final for the supplier. On Citi's Walmart program the sale is without recourse ². Nafin states that early payment through its program does not create debt for the supplier ⁶. The supplier receives a discounted amount, and the bank collects the full invoice from the buyer.

Currency also matters. Nafin funds in pesos or US dollars ⁵. A supplier with peso costs and dollar invoices still carries exchange risk, as our guide to paying in dollars, earning in pesos explains.

1. Supplier invoicesThe supplier delivers to the buyer and issues its CFDI on the agreed payment terms.
2. Buyer approvesThe buyer confirms the invoice in its system and makes it available on the program platform.
3. Supplier opts inThe supplier chooses which approved invoices to sell. It can also hold them to maturity ².
4. Bank pays earlyThe bank buys the invoice at a discount, at its discretion and without recourse to the supplier ².
5. Buyer pays the bankAt maturity the buyer pays the full invoice amount to the bank ².

04What does it cost, and what should a supplier check?

Programs publish few prices. No sourced rate was found for a US buyer's program in Mexico, so this guide quotes none. Nafin sets its rates on the anchor's credit profile. Under Plan México, it gives a discount of 100 basis points on peso factoring and 30 basis points in foreign currency ¹³.

The payment term often matters more than the rate. Check whether the buyer extends its payment days when the program starts. Each extra day is a day the supplier either waits or pays to be paid early. The Trade Finance Guide covers this trade-off in extending terms, keeping suppliers strong. Moody's, as reported by GTR, called 90 days a "reasonable upper limit" for a buyer to repay the financier and still treat the balance as a trade payable ⁴.

A listed buyer's annual report can help. Under US GAAP from fiscal 2023, and under IFRS from 2024, buyers disclose the key terms and size of their supplier finance programs ^10,11.

Checklist

Before you join a US buyer's program

• Mexico is coveredThe buyer confirms that suppliers invoicing from Mexico can join, and in which currency.
• Payment term in writingCompare the payment term before and after the program starts. More days mean more days to finance.
• Discount and feesGet the discount rate and every fee in writing, per invoice and per year.
• Choice per invoiceConfirm that you can sell some approved invoices and hold others ².
• Exit termsAsk what happens to approved invoices if the bank or the buyer ends the program.

These checks are general practice. Each program sets its own conditions.

05Where does a buyer program fit in the supplier's cash cycle?

A buyer program pays after the invoice is approved. It covers the days between approval and the due date. Materials, wages, tooling and freight come earlier and need other finance, such as pre-shipment finance.

Where the buyer has no program, the supplier can sell its invoices through factoring in Mexico or insure the buyer's risk with trade credit insurance. Some buyers offer dynamic discounting instead, paying early from their own cash in return for a discount. Vehicle suppliers can find more in our guide to finance for tier 1 and tier 2 suppliers.

Where the cash goes

From order to payment inside a buyer program

1. Before shipment
   Materials and productionThe supplier pays for inputs and wages. A buyer program does not fund this stage.
2. Shipment
   Invoice issuedThe supplier issues the CFDI on the buyer's payment terms.
3. Approval
   Invoice confirmedThe buyer approves the invoice. Disputed amounts wait until they are settled.
4. After approval
   Early paymentThe supplier sells the approved invoice to the bank at a discount ².
5. Due date
   Buyer pays the bankThe bank collects the full amount from the buyer ².

The order of cash needs is typical. Days, discounts and fees depend on each program.

Buyer runs a programPayables finance

The buyer approves the invoice and a finance provider pays the supplier early.

Buyer pays early itselfDynamic discounting

The buyer uses its own cash and takes a discount for each day it pays early.

Buyer has no programFactoring or invoice discounting

The supplier sells or borrows against its unpaid invoices.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

06What happens if the buyer changes or ends its program?

A program depends on the buyer's banks. Moody's has warned that extensive use of supplier finance poses a risk to a company's liquidity. A program can unwind quickly if a bank withdraws or cuts it, according to GTR's report of the Moody's analysis ⁴. In May 2024, Moody's named Advance Auto Parts as the most vulnerable US auto parts retailer if banks pulled this kind of short-term financing ¹².

If early payment stops, the supplier waits for the buyer's contractual term again. It then needs other finance, such as factoring or inventory finance. Keep a second source of funding open while the program runs.

07What should suppliers watch next?

Buyer programs change with the buyer's credit and its banks. Watch for new programs from large buyers with supply chains in Mexico, and for changes to Nafin's terms. Tariffs and rules that affect the goods behind each invoice are listed on our corridor watch page.

• Each yearListed buyers report the terms and size of their supplier finance programs in their annual reports ^10,11.
• Sep 3, 2026Nafin and the Nuevo León auto cluster, CLAUT, agreed factoring with rate discounts for small auto suppliers ¹³.
• Aug 5, 2024IFC and Citi signed a US$500 million supply chain finance facility for suppliers in Mexico ¹.
• May 2, 2024Moody's named Advance Auto Parts as the US auto parts retailer most exposed if banks pull supplier finance ¹².
• Jan 1, 2024New IFRS disclosure rules on supplier finance took effect for buyers reporting under IFRS ¹¹.

Questions traders ask

What is a supplier finance program?

It is a program set up by a large buyer with a bank. The buyer approves a supplier's invoice, and the supplier can sell it to the bank before the due date at a discount. The buyer pays the bank at maturity. It is also called payables finance or reverse factoring.

Do US buyers run programs for suppliers in Mexico?

No public program aimed specifically at suppliers in Mexico was found for this guide. Some US buyers run bank programs, such as Citi's program for Walmart suppliers and the programs GM and Ford used in 2020, but their terms for suppliers in Mexico are not public. Ask the buyer's purchasing or treasury team.

How much does early payment cost?

The cost depends on the program and on the buyer's credit. No public rate for a US buyer's program in Mexico was found. Get the discount rate and all fees in writing, and check whether the buyer lengthened its payment term when the program started.

Can a supplier in Mexico use Nafin instead?

Yes, if its buyer has set up a chain at Nafin. Cadenas Productivas lets suppliers of large private firms and governments sell approved invoices without recourse, in pesos or US dollars, for up to 360 days. Nafin states that this early payment does not create debt for the supplier.

What if the buyer ends its program?

The supplier goes back to waiting for the contractual payment term. Moody's has warned that programs can unwind quickly if banks withdraw. Keep another source of funding open, such as factoring or a credit line, while the program runs.

Read next

• Corridor guideFactoring in Mexico: how exporters sell invoices for cash
• Corridor guideSupplying vehicle makers: finance for tier 1 and tier 2 suppliers
• Corridor guideDeductions, chargebacks and disputes that delay payment
• Corridor guideElectronic invoices (CFDI) and why lenders check them
• Corridor guideMexico's development banks for trade
• Product briefAuto parts: the trade that crosses the Mexico-US border in both directions
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Joining a buyer's supplier finance program between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. IFC, IFC and Citi to support sustainable supply chain finance in Mexico, August 5, 2024. https://www.ifc.org/en/pressroom/2024/ifc-and-citi-to-support-sustainable-supply-chain-finance-in-mexico
2. Citi Treasury and Trade Solutions, Walmart supplier program page (undated). https://citibank.com/tts/sa/walmart
3. US Commercial Service, Mexico Country Commercial Guide: Trade Financing, February 17, 2026. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
4. GTR, Moody's warns over unreasonable supply chain finance payment terms (undated). https://www.gtreview.com/news/americas/moodys-warns-over-unreasonable-supply-chain-finance-payment-terms/
5. Nafin, Cadenas Productivas (undated). https://www.nafin.com/portalnf/files/secciones/modulo-de-atencion-virtual/pdf/factoraje/cadenas_productivas.pdf
6. Nafin, Factoraje a proveedores (undated). https://www.nafin.com/portalnf/files/secciones/modulo-de-atencion-virtual/pdf/factoraje/factoraje_a_proveedores.pdf
7. Reuters via Automotive News, GM, Ford use payment programs with banks to aid suppliers, May 28, 2020. https://www.autonews.com/automakers-suppliers/gm-ford-use-payment-programs-banks-aid-suppliers
8. Cluster Industrial, Bancomext ofrecerá financiamiento a proveedores de la industria automotriz, July 7, 2023. https://clusterindustrial.com.mx/bancomext-ofrecera-financiamiento-a-proveedores-de-la-industria-automotriz/
9. The Logistics World, Walmart de México invites new companies to its supplier network, April 24, 2023. https://thelogisticsworld.com/actualidad-logistica/walmart-de-mexico-invita-a-nuevas-empresas-a-su-red-de-proveedores
10. Grant Thornton, Disclosure of supplier finance program obligations (ASU 2022-04), October 2022. https://www.grantthornton.com/insights/articles/audit/2022/snapshot/october/disclosure-of-supplier-finance-program-obligations
11. PwC Switzerland, New IFRS disclosures on supplier finance arrangements effective in 2024 (undated). https://www.pwc.ch/en/insights/accounting/new-ifrs-disclosures-on-supplier-finance-arrangements-effective-in-2024.html
12. Axios Pro, Moody's on Advance Auto Parts and supply chain finance risk, May 2, 2024. https://www.axios.com/pro/retail-deals/2024/05/02/advanced-auto-parts-retailers-supply-chain-finance-risk-moodys
13. Cluster Industrial, CLAUT and Nafin support finance for auto SMEs in Nuevo León, September 2026. https://clusterindustrial.com.mx/claut-y-nafin-impulsan-financiamiento-para-fortalecer-a-las-pymes-automotrices-de-nuevo-leon/

All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this guide. Prepared for Ossiano Capital. People planned, researched, wrote and checked this guide, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.