Incomlend, a Singapore-based global invoice financing marketplace, has announced a US $ 2.5 million invoice financing programme for a leading Indian apparel manufacturer.
The initiative will bolster the apparel manufacturer’s production and exportation capabilities, safeguarding its vital revenue streams with customers, including fashion retailers across Europe, the US and the Asia Pacific.
Invoice financing is a way for businesses to borrow money against the amounts due from customers.
The move came when the manufacturer received a request from one of its key customers in Europe to lengthen the payment terms from 75 days to 120 days to ease cash flow against a challenging setting where the pandemic impacted several branches.
Incomlend connects SMEs with communities of investors, enabling them to buy and sell individual invoices online.
It didn’t disclose the name of the Indian apparel manufacturer.
In a statement, Incomlend said that the working capital solution provided by Incomlend will enable the apparel manufacturer, which operates eight manufacturing plants, to safeguard its financial health and maintain manufacturing operations to capture new revenue opportunities.
It will also allow the manufacturer to protect itself from credit risks and heightened volatility in the retail space, especially when many bricks-and-mortar retail stores remain under threat due to the pandemic.
The apparel manufacturer will now be able to cash in an invoice as early as three days following the shipment of products. The retailer (importer) will have the option of paying for the shipment’s invoice value up to 120 days later.
Morgan Terigi, Incomlend CEO and Co-founder said, “From supply chain disruptions to the ongoing closure of physical stores, the apparel industry continues to navigate the impact of COVID-19. Businesses in the sector face increased financial challenges, from limited cash flow to credit risks. With our extensive experience working with apparel manufacturers and fashion retailers, we understand the pain points that exporters and importers face in today’s pandemic climate. We offer our invoice financing programme, a working capital solution to meet evolving business requirements and ultimately, a win-win situation for both exporter and importer.”
