ONLINE invoice trading platform Incomlend has secured US$60 million from European alternative asset manager Fasanara Capital to launch an alternative financing programme for small and medium-sized enterprises (SMEs) focused on environment, social and governance (ESG).

The initiative, called Incomlend ESG Invoice Financing Programme, will improve eligible SMEs' access to working capital, by allowing them to monetise invoices with a quick turnaround of as early as three days following the shipment of their products.

It will also allow SMEs the fiscal agility to capture new revenue opportunities and hedge themselves from credit risks, Singapore-based Incomlend said in a statement on Tuesday.

Incomlend's global invoice exchange platform lets companies finance their export invoices by selling them to institutional investors at a discount. Exporters get paid early for supplied goods and services, while importers are able to extend payment terms and minimise the risk of supply chain disruption.

Fasanara Capital, which is already a lender on Incomlend's platform, will provide senior funding and Incomlend will provide junior funding. The former will provide the US$60 million funding for three years; 100 per cent of it is allocated for the financial programme.

Incomlend said it will assess the SMEs' ESG plans using international standards including the United Nations (UN) Principles on Business and Human Rights, the UN Sustainable Development Goals, and the Paris Agreement.

A NEWSLETTER FOR YOU

Friday, 12.30 pm

ESG Insights

An exclusive weekly report on the latest environmental, social and governance issues.

Sign Up

The company expects improved cash flow will allow SMEs to have the financial health and resources to make more and bolder ESG-centric changes within their organisation and supply chain.

It noted that the programme - Asia's first ESG-focused structured finance programme - connects institutional investors that are keen to support ESG-centric business with these ESG-focused SMEs, and also allows investors to diversify their investments in assets while providing steady returns.

Incomlend chief executive and co-founder Morgan Terigi said: "We believe that ESG is not a hindrance but an accelerator of SMEs' growth, and more needs to be done to aid ESG-focused SMEs."

Founded in Singapore, Incomlend - since it started operations in 2016 - has offices and representation in Europe, India, South-east Asia, Dubai and Hong Kong, and it has financed over US$500 million in trades across 50 countries worldwide.

READ MORE

• Invoice trading platform Incomlend raises US$20m, led by Sequoia

• New ways to make money: The alternative alternative assets