İSO Chairman Bahçıvan Calls for New Industrial Financing Model Focused on Supply Chain and SME Guarantees

İSO Chairman Erdal Bahçıvan declared that the manufacturing sector’s financing problems have evolved into a structural crisis, urging a new model to break away from excessive reliance on bank loans.

A Framework for Standardizing Supply Chain Financing

■Expanding supply chain financing through regular refinancing facilities and advance payment options is essential.

■To counteract the downstream cost pressure from extended buyer payment terms, transparent invoicing and early‑payment discounts should be introduced.

■This mechanism aims to halt the downward trend of the 47.7‑level Türkiye Manufacturing PMI, which has remained below the 50‑threshold for 28 consecutive months.

Strengthening SME Guarantees and Risk‑Sharing Models

■Bolstering guarantee mechanisms for SMEs is critical to alleviating credit constraints.

■State‑backed credit guarantee funds and mutual guarantee schemes are proposed to lighten the financing burden on small enterprises.

■Incentivizing large firms to make advance payments to their smaller supply‑chain partners is also highlighted.

Integrating Development Banking and Capital Market Instruments

■Expanding the project‑financing capacity of development banks will provide long‑term capital for strategic investments.

■Improving access to capital‑market tools—such as commercial paper and structured finance—will offer SMEs alternative funding sources.

■Separate financing mechanisms for production, exports, technology, and productivity are urged to boost output and efficiency.

As Zeynep Turan, I view this call not merely as a plea for more financing products but as a demand for a structural overhaul that fortifies Turkey’s industrial base. Standardizing supply‑chain financing and reinforcing SME guarantee frameworks will reduce dependence on traditional bank lending, preserving the integrity of the production chain. Moreover, integrating development banking with capital‑market tools will unlock long‑term investment resources, addressing the sector’s slowdown with a durable solution. The success of this model hinges on maintaining a macro‑economically stable interest‑rate environment and securing regulatory backing to build a resilient financing ecosystem.