Utilizing panel data from 285 cities across China and listed firms spanning 2003 to 2021 as the research sample, this empirical investigation scrutinizes the ramifications of regional industrial agglomeration on corporate supply chain financing. The findings evince that manufacturing agglomeration significantly augments firms’ supply chain financing, while service sector agglomeration exerts a significant inhibitory impact. The heterogeneity analysis unveils stark disparities in the influence of industrial agglomeration on supply chain financing across firms with divergent characteristics. These insights facilitate a profound comprehension of the microeconomic repercussions stemming from industrial agglomeration and furnish empirical evidence to guide firms in optimizing their microfinance decisions.