ESG-focused SMEs supported by Incomlend & Fasanara Capital
Global invoice financing marketplace, Incomlend, has partnered with European alternative asset manager, Fasanara Capital, to launch a global US$60mn alternative financing programme for Small and Medium Enterprises (SMEs) focused ESG.
The new initiative, Incomlend ESG Invoice Financing Programme, is tailored for SMEs looking to positively impact their communities while continuing to capture new business opportunities and grow their revenue.
Incomlend is a global invoice financing marketplace for businesses and private capital. Founded in 2016, the Singapore-based company provides invoice finance services in over 50 countries worldwide.
Established in 2011, Fasanara Capital is a quantitative fintech investment company headquartered in London.
Connecting investors who want to support ESG centric businesses with sustainable SMEs
SMEs that meet the ESG criteria and pass the financial assessment process, will be able to access a quick turnaround for invoice financing solutions.
These solutions will:
- Improve SMEs' access to working capital by allowing them to monetise invoices as early as three days following the shipment of their products
- This gives them the fiscal agility to capture new revenue opportunities
- It will also enable SMEs to hedge themselves from credit risks in today's volatile global economy
Incomlend will assess the SMEs ESG plans by using established international standards, such as:
- The United Nations (UN) Principles on Business and Human Rights
- The UN Sustainable Development Goals
- The Paris Agreement
With improved cash flow, SMEs will also have the financial health and resources to make more and bolder ESG-centric changes within their organisation and supply chain.
The changes include sourcing socially and environmentally responsible and adopting greener technology to reduce their carbon footprint.
It is hoped that this can help SMEs foster greater trust among stakeholders and attract more customers.
The new initiative is also Asia's first ESG-focused structured finance programme. Investors' interest in ESG and Sustainable Investing has grown substantially over the years. According to the Global Sustainable Investment Alliance, sustainable investment in the US, Canada, Australasia, and Europe has increased by 15% from 2018 to 2020, reaching USD35.3tn in value. It comprises more than one-third of all assets under management.
In addition, the ESG programme connects institutional investors who are keen to support ESG centric businesses with socially responsible, sustainable SMEs. It also allows investors to diversify their investments in assets while providing robust and steady returns at a transparent, monitored, and limited risk level.
The enduring power of ESG prevails
Incomlend believes that ESG is not a hindrance, but an accelerator for SMEs' growth.
"We believe more needs to be done to aid ESG-focused SMEs”, said Morgan Terigi, Incomlend CEO and Co-founder. “Through this joint alternative financing programme with Fasanara Capital, we aim to nurture more responsible companies globally and enable them to grow their business and profitability. We hope these ESG-centric SMEs can become successful role models that their peers emulate, thereby encouraging more businesses to focus on ESG."
Fasanara Capital is excited to partner with Incomlend to pioneer this new funding initiative.
"Incomlend shares our commitment to support ESG-focused enterprises”, said Francesco Filia, Fasanara Capital CEO. “SMEs represent approximately 90% of companies globally and have tremendous collective potential to make a positive impact. With Incomlend's global reach and proven expertise, we are confident that they can maximise our investment and deliver working capital at scale to the right SMEs to drive meaningful change worldwide."
