Supply@ME Secures Commitment for UK’s First Inventory Monetisation Transaction
Supply@ME today announced that it has secured a binding commitment by an institutional investor to invest in the first UK Inventory Monetisation transaction deal (“IM”), which will be used to monetise up to £1.8m of warehoused goods of a UK business which provides technology and parts to the global marine industry.
Inventory monetisation solves a problem which is common across every business that retains physical goods – historically, inventory has been an unattractive asset to fund for financial institutions. It has been perceived as high risk and liable to fraud due to an inability to effectively monitor stock levels. Supply@ME is providing a means for businesses to improve their capital positions by providing access to funding based exclusively on the value of their inventory, typically at a reduced cost to that of other traditional facilities and allowing for greater levels of funding.
Supply@ME’s fintech platform connects manufacturing businesses, from heavy manufacturing and chemicals to high end food and fashion, with funders who monetise unsold stock enabling businesses to release capital trapped in stored inventory. Businesses can use this facility as a more cost-effective alternative to traditional banking or asset-based lending options, without incurring debt. When manufacturers secure a buyer for their stock, they then can request to repurchase it before selling to the end customer.
Supply@ME’s fintech platform facilitates access to a new source of improved cashflow for businesses facing increasing pressure from disruptions in the supply chain. Additionally, the integration with manufacturers’ existing systems, as well as enabling monitoring activities, allows the manufacturing business to receive reports on inventory optimisation and risk management.
Alessandro Zamboni, CEO of Supply@ME, said:” Supply@Me’s innovative platform solves a longstanding problem for UK businesses and will enable them to unlock capital trapped in unsold inventory. Financial institutions have, typically, been reluctant to lend against only inventory. This has meant that the funding available to manufacturing and wholesale businesses has been limited, comes with excessive covenants or is often costly to obtain and linked to an overall working capital facility.
“Supply@ME is providing a means for businesses to improve their capital positions by providing access to funding based exclusively on the value of their inventory. In turn, businesses can deploy these funds to facilitate growth. Our first inventory monetisation in the UK opens our platform to British businesses across the country and we are looking forward to working with them to help them realise their full potential.”
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