Invoice financing marketplace Incomlend and Fasanara Capital have teamed to launch a global alternative financing program for SMEs focused on ESG.
The program – named the Incomlend ESG Invoice Financing Programme – will provide £44.14m in financing for SMEs who are looking to positively impact their communities while also looking to capture new business opportunities and grow their revenue.
Incomlend noted that SMEs who meet the ESG criteria and pass the financial assessment process can access quick turnaround invoice financing solutions. These solutions, the firm claims, can improve SMEs access to working capital by allowing them to monetise invoices as early as three days following the shipment of their products.
To assess the SMEs ESG plans, Incomlend will be using established international standards such as the United Nations Principles on Business and Human Rights, the Paris Climate Agreement and the UN Sustainable Development Goals.
Incomlend remarked that with improved cash flow, many SMEs will also have the financial health and resources to make more and bolder ESG-centric changes within their organisation and supply chain. These changes include sourcing socially and environmentally responsibly as well as adopting greener technology to reduce their carbon footprint.
The ESG program will also connect institutional investors who are keen to support ESG-centric firms with socially responsible and sustainable SMEs.
Founded in 2016, Incomlend connects SMEs globally with communities of investors to enable them to finance individual invoices on an exchange platform. The company has financed over £368m in trades across 50 countries since its founding.
Incomlend CEO 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. 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 CEO Francesco Filia added, “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. 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.”
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