The UK-based company, with an office in Singapore, has combined its own capital with that of alternative asset manager Crayhill Capital Management to launch a platform for acquiring 120-day trade receivables from SMEs in China and Southeast Asia.
The launch comes at a time when many traditional financial institutions are vacating the space as they de-risk their balance sheets and focus their resources on core sectors and geographies. The short-term funding is designed to free up capital for these manufacturers, typically in the consumer goods space, to continue meeting orders from large retailers in the west.
Large banks find it difficult to cater for the granularity of Asian supply chains. Their programmes are often not scalable and destined only to work for large multinationals and their long-term, steady suppliers throughout the region. This leaves a gaping hole in the market for smaller companies requiring access to working capital.
The company is developing its client base on both sides of the transaction: working with buyers, who have more influence in the bilateral transactional relationship, but forging a contractual relationship with suppliers, since they are the party requiring the finance.
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