Innovative Solutions for MSMEs: JOIN’s Supply Chain Finance Challenge

One of the most pressing challenges facing Micro, Small, and Medium Enterprises (MSMEs) today is the issue of working capital financing. In simple terms, this refers to the liquidity that businesses need to carry out daily operations — whether that's paying employees, covering operational costs, or fulfilling customer orders. While the need for working capital is universal, MSMEs often find themselves in a particularly tough spot. 

In Jordan, 99.5% [1] of all enterprises fall under the MSME category, making them the backbone of the national economy. Yet despite their critical role, MSMEs face significant barriers when seeking financing from both Banks and Microfinance Institutions (MFIs). This “missing middle” leads to severe liquidity constraints that hinder the growth of these businesses. And even when MSMEs do have collateral, it's often unregistered, further deterring lenders due to perceived risks and instability.

As a result, many MSMEs are excluded from traditional financing channels, leaving them to rely on less favorable alternatives. Negotiated payment terms with buyers or suppliers may offer some flexibility, but these terms can strain cash flow. A supplier, for example, might have to wait 90 days to receive payment from a buyer while also struggling to finance their own working capital during that period. This creates a vicious cycle where both buyers and suppliers face financial pressure, and MSMEs are often left out of key supply chains altogether.

This challenge calls for innovative, sustainable solutions to ensure MSMEs are able to thrive, access financing, and ultimately contribute to the economy at large.

The Supply Chain Finance Challenge: A Step Towards Solutions

In response to this pressing need, JOIN Fincubator, JoPACC’s fintech incubator, in partnership with GIZ, launched a corporate challenge in September 2023 under the name Supply Chain Finance (SCF) Challenge, aiming to identify and nurture innovative solutions to tackle the supply chain financing challenges faced by MSMEs in Jordan. This challenge targets corporates and startups that are registered in Jordan, or companies with Jordanian founders with the aim to empower the Jordanian market and all the players. Through this challenge, startups and companies competed to present a supply chain financing solution that develops and implements new ways of improving cash flow and enabling business growth. 

This approach not only improves liquidity for MSMEs but also strengthens relationships between buyers and sellers. By ensuring that suppliers have better access to working capital, they can continue to meet demand, expand their operations, and focus on long-term growth rather than immediate financial survival. 

The sponsoring banks, Jordan Kuwait Bank, Jordan Islamic Bank, and the Housing Bank,  were involved with this challenge from the beginning to ensure that all competing solutions were relevant and could actually be implemented. After all, the winning solution would implement the proof of concept (PoC) with them. 

Eligibility Criteria and Challenge Roadmap: Ensuring a Seamless Journey from Selection to Implementation

To ensure that only the most qualified companies were chosen, a few key eligibility requirements were set to guide the selection process: 
First, the company needed to demonstrate the ability to implement the POC within 60 days of selection, ensuring timely execution. We required companies to be at a mature stage, with established products already being sold in the market, or demonstrate readiness to have a product ready within 60 days, as this would indicate operational stability and readiness for scaling. Additionally, to ensure local engagement, companies not registered in Jordan with at least one Jordanian founder must register in Jordan within 60 days of the selection date.

The Supply Chain Finance Challenge followed a structured roadmap to guide companies through the process and ensure a seamless experience from start to finish. The journey began with a Call for Applications, inviting companies to apply and participate. Following this, an Introductory Session was held for interested companies to learn more about the challenge and its objectives. Once the details were clear, we shared submission requirements with all interested participants: applicants were required to present technical and business documents, as well as their financial projections. Next, a shortlist of candidates was selected by an esteemed jury of the sponsoring banks to present their solutions during a Demo Day, where startups had the opportunity to pitch their ideas to the sponsoring banks. The banks then evaluated the presentations and chose the finalists for in-depth 1-on-1 meetings. Finally, the winning companies embarked on implementing their solutions in collaboration with the sponsoring banks, marking the beginning of a valuable partnership aimed at driving innovation in supply chain finance.

From Applications to Implementation: The Journey of Innovators in Tackling Supply Chain Financing Challenges

The application process was highly competitive with a total of 11 companies submitting their innovative solutions to address the supply chain financing challenges faced by MSMEs in Jordan. After a thorough evaluation, 8 of these applicants were shortlisted to present their ideas during the demo day. This event provided a unique opportunity for the participants to showcase their solutions in front of representatives from the sponsoring banks. Following the presentations, 2 solutions stood out, earning the chance for in-depth discussions with the banks. Ultimately, CreditPlus, a JOIN Fincubator alumni, emerged as the winner of the challenge, securing the opportunity to implement Proof of Concept (PoC) in collaboration with a number of banks, taking a significant step toward addressing the financing barriers in the supply chain ecosystem.  

As an effort to strengthen supply chain financing (SCF) in Jordan, specialized training sessions were conducted in collaboration with FCI, the global representative body for factoring and trade receivables financing. These sessions provided banks in Jordan with deep insights into SCF transactions, covering critical areas such as legal and regulatory frameworks, product knowledge, and operational best practices. By leveraging FCI’s extensive expertise and global network, the training aimed to equip financial institutions with the necessary tools to navigate the complexities of SCF, enhance their service offerings, and drive economic growth. This initiative underscores the commitment to fostering a more robust and efficient banking sector, enabling smoother trade flows and greater financial inclusion.

During the in-depth meeting with the sponsoring banks, they were given an advantage from the outset, allowing them to provide feedback and recommendations on the product to ensure compliance with their requirements. Additionally, the bronze sponsor, Jordan Islamic Bank played a crucial role in ensuring that the product adheres to Sharia compliance standards.

As part of JoPACC’s and JOIN’s support for this challenge, they fully covered the Proof of Concept (PoC) costs for the sponsoring banks. Furthermore, they offered Credit Plus to conduct all necessary security testing in collaboration with JoPACC’s partner The Royal Scientific Society (RSS). Additionally, JoPACC facilitated Credit Plus’s secure connectivity with the banks, minimizing security and network risks associated with introducing new products or services. This approach ultimately aims to streamline and accelerate the process.

One of the key milestones during the implementation of the Supply Chain Finance (SCF) platform was the collaboration between two Jordanian startups, CreditPlus and InvoiceQ.

InvoiceQ is a Jordanian startup specializing in e-invoicing software for MSMEs, ensuring their compliance with the tax regulations set by the Income and Sales Tax Department in Jordan. This collaboration played a vital role in enhancing the SCF process by helping CreditPlus address a critical challenge—verifying invoice authenticity and minimizing the risk of double financing.

Beyond its impact on the SCF platform, this partnership marks a significant step forward for Jordan’s fintech ecosystem. By integrating e-invoicing with SCF solutions, the collaboration enhances transparency and trust in financial transactions, encouraging more businesses, especially MSMEs, to adopt digital financial services.

Moreover, this partnership strengthens Jordan’s financial ecosystem and encourages further innovation and cooperation within the local fintech industry.

During the implementation of the Proof of Concept (PoC), JoPACC played a crucial role as a coordinator between the banks and CreditPlus, ensuring the commitment of both parties and overseeing the process from development to integration, testing, and ultimately deployment in a live environment with real customers. JoPACC also keeps the door open for banks interested in Supply Chain Finance (SCF) to Participate in the PoC.

Moreover, to mitigate any potential risks for the banks related to customer transactions, JoPACC has taken on the role of the buyer during the testing phase for the PoC. Financing the supplier’s invoices through CreditPlus enhances reliability and minimizes risks for the banks. 

In late February 2025, the Proof of Concept (PoC) was successfully implemented with Housing Bank and Ahli Bank in a live environment involving real customers. This achievement marked Housing Bank as the first bank to complete all the necessary steps to go live.

Why This Challenge Matters

The SCF Challenge is not just about financial innovation; it’s about creating a healthier, more inclusive economy where MSMEs are empowered to succeed. By tackling the cash flow bottlenecks that so many small businesses face, the challenge is opening doors to new opportunities and transforming how business gets done in Jordan.

Looking ahead, we hope to see more solutions developed inspired by the SCF Challenge in real-world scenarios, helping MSMEs access the capital they need to fuel growth and stability.

As the challenge continues, we’re excited to see how these innovative ideas evolve and how they can serve as models for other regions facing similar obstacles. The journey towards solving the supply chain finance problem is ongoing, but with the right support, MSMEs will be better positioned to contribute to a stronger, more resilient economy.

[1] Jordan Chamber of Industry: https://jci.org.jo/Chamber/Services/Sectors/80095?l=en