How supply chain financing supports small businesses.

Matt Frohling, a director in Citi's Global Transactions Services group, recently spoke about the role of supply chain financing in helping support small businesses in a tighter market for traditional lines of credit. Under such programs, buyers leverage their investment-grade credit rating to provide their suppliers with access to affordable financing so they can continue moving products. Frohling estimates that Citi's supply chain finance program has been putting $2 to 3 billion annually into approximately 3,000 small businesses.

"We feel like we've been making a significant contribution to the economy through the program, and it's really been to the benefit of our clients, our buying organizations, who are also providing financial health to their supply chains, enabling them to fill orders, which further helps the economy," he said. "So it's really been a good story."