Working capital solutions programme for ESG-focused SMEs launched

Photo by Singkham from Pexels
Photo by Singkham

Incomlend has partnered with Fasanara Capital to launch a global US$60 million alternative financing programme for Small and Medium Enterprises (SMEs) focused on Environment Social, and Governance (ESG).

The new initiative, named 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.

SMEs that meet the ESG criteria and pass the financial assessment process can access quick turnaround invoice financing solutions. These solutions 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 be assessing the SMEs ESG plan by using established international standards, such as the United Nations (UN) Principles on Business and Human Rights, the UN Sustainable Development Goals, and 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. 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 USD35.3 trillion 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.

Incomlend CEO and Co-founder Morgan Terigi commented: “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.

“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.”

Fasanara Capital CEO Francesco Filia commented: “Incomlend shares our commitment to support ESG-focused enterprises, and we are excited to partner with them to pioneer this new funding instrument. SMEs represent approximately 90% of companies globally and have tremendous collective potential to make a positive impact.”