Sheffield-based Enable Finance is now offing SMEs an online unsecured revolving credit facility.
Unlike factoring or invoice finance this supply chain finance facility provides businesses with cash before they have sold or even produced the goods.
The facility gives companies an agreed credit limit, much like a credit card, to spend with their suppliers with a payback period of up to 120 days. Suppliers can be based anywhere in the world and provide any sort of product, service, or raw material. No letters of credit or title over goods are required.
Once the facility is repaid it can be re-used again and again in full or in part.
Phillip Evans, director at Enable Finance, said: “No debentures, waivers or personal guarantees are required, and therefore it can be used in addition to existing banking or funding relationships as extra working capital.
This is a new, faster, more flexible and more responsive approach to trade finance that hasn’t been available from traditional sources. The online funding solution puts it all together on a single platform, providing the buyer with a pre-approved revolving facility that can be used at any point in the supply chain.”