+44 (0) 207 065 6634
FINANCE FLOW PARTNERS LLP
We will get you the capital you need
The world is awash with liquidity yet small and medium sized companies (“SMEs“) are struggling to get basic funds for everyday operations. Good businesses, with great order books and excellent prospects, are stuck in a never ending liquidity trap leading to frustratingly slow growth.
This is down to the regulatory changes in the banking industry after the credit crisis of 2007/2008 and the Eurozone crisis of 2010/2011. Institutions with spare funds are either stuck with low yielding assets or locked into longer term assets that are exposed to inflaton risks and rate rises whilst those borrowers with a real need for financing i.e. SMEs that provide 90% of global employment are struggling for basic working capital.
Headquartered in London, Finance Flow Partners LLP deploys investor funds by lending to SMEs and assisting with their working capital requirements. We think there is a strong case for investing in such exposures as they are relatively uncorrelated to stock market fluctuations and rate rises.
Our partners have over 50 years of combined experience in investment banking, capital markets, structured finance and asset management. Our experience helps us structure financing transactions that bridge the gap between fixed-term fund deployment (required by institutional investors and family offices) and short-term, flexible funding (required by small and medium corporate borrowers).
If you need financing, get in touch with us. We’ll talk to you and try our best to get a solution. One size doesn’t fit all and we specialise in trying to get you the funding you need.
Types of funding offered to SMEs
Invoice Discounting is also referred to as Receivable Discounting. FFP will provide financing against receivables owed to SMEs by their customers. The financing itself is provided by FFP purchasing invoices outright for an advance of 80-90% of the face value of the invoice or the receivable. The customers may or may not know about the arrangements between the SMEs and FFP. The SMEs also retain control of their sales ledger and chase collections in the usual way. When they get paid by their customers, they will pass the money owed back to FFP. Invoice Discounting can be with or without recourse to the SME. FFP offers domestic and cross-border invoice discounting.
Factoring is similar to invoice discounting wherein FFP will purchase all or part of the SMEs receivables’ book. However, in a factoring transaction, the customer will be informed of the arrangement and FFP will maintain control of the sales ledger and the collections. FFP will advance 80-90% of the receivables to the SME. When FFP receives the remainder from the customer it will pass that to the SME (less its imputed yield and commission). Factoring can be with or without recourse to the SME. FFP offers both domestic and cross border factoring.
In a Forfaiting transaction, the SME will not sell its receivable to FFP. Rather it will sell its claim to the receivable due from its customer against goods or services delivered. Typically, the SMEs in this transaction will be exporters and FFP will provide 100% of the value of the claim (less its imputed yield and commission) to the exporter. FFP will have no recourse to the exporter/SME. However, it will manage its risk by taking delivering of negotiable instruments like bills of exchange or promissory notes.
SUPPLY CHAIN FINANCE
Supply Chain Finance, also known as Reverse Factoring, refers to cases where FFP will offer to pay a medium or large corporate’s (“Corporate“) suppliers in return for a guarantee of payment by the Corporate. The Corporate is offered lengthier payment terms to help with its cash-flow. In such a situation, FFP will be taking risk on the Corporate and the Corporate’s ability to pay its obligations on the agreed date and at the agreed terms. FFP offers domestic and cross-border supply chain finance.
OFF-BALANCE SHEET SUPPLY CHAIN FINANCE
Inventory Finance or Stock Finance refers to instances wherein FFP is able to offer select SMEs liquidity by financing against their inventory or stock. The advance rate (or haircut offered) and the rate at which the financing is advanced will depend on the stock, the off-take agreement between SMEs and their customers, the ageing of the inventory and the SMEs credit metrics.
BESPOKE STRUCTURED CREDIT
Often SMEs will require a form of structured credit to address their working capital needs that does not easily fall into the categories described above. FFP will analyse each such requirement on a case-by-case basis and will endeavor to provide an optimal solution.
Every man lives by exchangingADAM SMITH
How can we help?
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Finance Flow Partners LLP is in a strategic partnership with Mariana Investment Partners LLP,
which is authorised and regulated by the Financial Conduct Authority