Imagine if you freed up all the liquidity tied up in account receivables within the SME space and released it into the real economy. Why should the most dynamic part of the economy, the small businesses have to wait 30, 60, 90 days plus to get paid, when expected returns in most asset classes are at record lows and investors across the globe are searching for new return streams.
The fund is based on a sympathetic concept of making returns by filling out this gap, investing in the invoices and providing investors access to a new asset class, and hereby benefit from improving the supplier ecosystem. Many big corporations have supply chain finance programmes delivered by banks trying to solve the issue. However these are often very inefficient and most importantly do not address the big tail of small suppliers who often need a liquidity solution the most. That is where we come into the picture.