2026 Supply Chain Trends: Why Suppliers are Prioritizing Liquidity Over Cost

Key Takeaways: 2026 Market Analysis

• The Shift: Global trade has moved from “just-in-time” efficiency to “just-in-case” resilience, forcing companies to hold more inventory.
• The Surprise: Despite high interest rates, supplier willingness to borrow has jumped from 19% to 28% year over year as businesses prioritize cash certainty over cost.
• The Strategy: Smart suppliers are abandoning static “wait and see” approaches in favor of flexible, on-demand liquidity tools to manage unpredictable order surges.
• The Data: Insights based on Citi’s Supply Chain Financing: Durable Global Trade in the Age of AI (February 2026).

If you are finding it harder to forecast your cash flow this year, you are not alone. Between new tariff announcements and interest rates that refuse to drop, the “rules of the road” for running a business seem to change weekly.

When uncertainty hits, it is easy to rely on old assumptions—like “borrowing is too expensive right now” or “buyers are pulling back.”

But a new Citi report, Supply Chain Financing: Durable Global Trade in the Age of AI, paints a very different picture of what is actually happening in the global supply chain. The data suggests that smart businesses are flipping the script on how they manage cash.

Here is a quick breakdown of the myths holding suppliers back versus the reality of the 2026 market:

The 2026 Reality Check

Why Volatility is the “New Normal”

For years, supply chains ran on a “just-in-time” model. Everything was predictable. Today, we are living in a “just-in-case” world.

The report highlights that the global trade environment has shifted from “efficient” to “resilient”. Your customers are building buffers against tariffs and supply shocks. This creates a ripple effect where orders might come in massive, unexpected waves—requiring you to ramp up production instantly—followed by long periods of silence while they work through that inventory.

Taking Control of Your Cash Cycle

In this environment, waiting for payment on standard 60- or 90-day terms is riskier than it used to be. You cannot afford to have your working capital trapped in an invoice when a new opportunity (or a new cost) could appear tomorrow.

The suppliers winning in 2026 aren’t the ones with the lowest costs; they are the ones with the most control. By using early payment platforms to accelerate your receivables, you aren’t taking on risky long-term debt. You are simply ensuring that when the market moves, you have the cash on hand to move with it.

Frequently Asked Questions (FAQs)

Why are suppliers borrowing more in 2026 despite high interest rates?

According to Citi’s 2026 trade report, supplier willingness to borrow increased to 28% in 2025 (up from 19% in 2024). Businesses are prioritizing liquidity certainty over the cost of capital to navigate volatile order cycles and ensure they can fulfill “just-in-case” inventory demands from buyers.

What is the “just-in-case” inventory trend?

“Just-in-Case” is a shift in which companies maintain higher inventory levels to buffer against supply chain shocks and tariffs, rather than the traditional lean “Just-in-Time” model. Citi reports that 49% of large corporations are preserving cash specifically to manage this price and demand volatility.

How do tariffs impact supplier cash flow?

Tariffs create a “feast or famine” order cycle. Buyers often front-load orders to beat potential tariff hikes, creating a sudden spike in production costs for suppliers, followed by periods of lower demand. This volatility makes static payment terms (like Net 60) dangerous for supplier cash flow.

Source: Citi GPS: Global Perspectives & Solutions, “Supply Chain Financing: Durable Global Trade in the Age of AI,” February 2026.