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Global invoice finance marketplace Incomlend, announced it has partnered with European alternative asset manager, Fasanara Capital, to launch a $ 60 million global alternative finance program for small and medium-sized enterprises (SMEs) focused on environment, social and governance (ESG).
The new initiative, named Incomlend ESG Invoice Financing Program, is designed for SMEs looking to positively impact their communities while continuing to seize new business opportunities and grow their revenues.
âWe believe that ESG is not a barrier but a growth accelerator for SMEs, and more needs to be done to help ESG-oriented SMEs. Through this joint alternative financing program with Fasanara Capital, we aim to foster more responsible businesses globally and enable these ESG-focused SMEs to become successful role models that their peers emulate, encouraging thus more companies to focus on ESG, âsaid Morgan Terigi, co-founder and CEO of Incomlend.
SMEs that meet ESG criteria and pass the financial assessment process can access fast invoice financing solutions. These solutions improve SMEs’ access to working capital by allowing them to monetize invoices within three days of their products being shipped. This gives them the tax agility to seize new income opportunities. It will also allow SMEs to hedge against credit risks in today’s volatile global economy.
Incomlend will assess the SME ESG plan using established international standards, such as the United Nations (UN) Principles on Business and Human Rights, the United Nations Sustainable Development Goals and the Paris Agreement. Through improved cash flow, SMEs will also have the financial health and resources to make increasingly bold ESG-focused changes within their organization and supply chain. The changes include socially and environmentally responsible sourcing and the adoption of greener technologies to reduce their carbon footprint. It can help SMEs build trust among stakeholders and attract more customers.
The new initiative is also the first structured finance program focused on ESG in Asia. Investor interest in ESG and sustainable investing has grown significantly over the years. According to the Global Sustainable Investment Alliance, sustainable investments in the United States, Canada, Australasia and Europe increased by 15% from 2018 to 2020, reaching $ 35.3 trillion in value. It represents more than a third of all assets under management.
âIncomlend shares our commitment to supporting ESG-driven companies, and we are delighted to partner with them to launch this new funding vehicle. SMEs represent around 90% of businesses in the world and have enormous collective potential to make a positive impact. reach and proven expertise, we are confident that they can maximize our investment and provide large-scale working capital to the right SMEs to drive meaningful change around the world, âadded Francesco Filia, CEO of Fasanara Capital.
In addition, the ESG program connects institutional investors wishing to support ESG-focused companies with sustainable and socially responsible SMEs. It also allows investors to diversify their investments in assets while providing strong and stable returns at a transparent, monitored and limited level of risk.
Founded in Singapore, with offices and representation in Europe, India and Southeast Asia, Dubai and Hong Kong, Incomlend connects SMEs around the world with communities of investors, enabling them to finance individual invoices on an exchange platform. Since starting operations in 2016, Incomlend has funded more than $ 500 million in transactions in 50 countries around the world.