Putting Capital to Work
Advance Global Capital, Ltd (AGC) is a financial services company based in the UK that focuses on financial inclusion by connecting small and medium-sized businesses in need of working capital with investors who seek commercial rates of return and a positive social impact. We take a centuries old financing tool and overlay expertise in structuring, risk management and financial software to bring global capital to underserved businesses around the world.
A Pioneering Approach to Financial Inclusion
A dessert maker needs to expand her kitchen, but she’s waiting for payment on her last shipment of cakes. A lavender business needs to hire employees for the Christmas rush, but doesn’t have a line of credit to pay them. Invoice discounting (or factoring) could turn their invoices to credit-worthy buyers into assets for immediate access to capital.
Factoring has been around since the Roman Empire where it was the lifeblood of Rome’s trade routes, fraught with the uncertainties of global commerce. To this day, factoring remains an important financing option, yet, penetration of factoring lags in emerging markets where a significant gap in SME financing exists.
The emergence of financial technology to accelerate lending holds promise, but in emerging markets big data is not widely available to support credit scoring. More importantly, levels of transparency and trust are low. There is no substitute yet for the know-your-customer and risk management best practices of traditional financing.
An Alternative Investment Class
AGC works with forward-thinking investors to put their principal to work with their values. We provide advice and origination support to investment funds with a focus on invoice discounting for SMEs with high growth potential. As an alternative in the specialty finance space, discounted invoices as financeable assets offer attractive risk-adjusted returns with low correlation to equity and bond markets. Invoice discounting that targets the missing middle in emerging and underserved markets also offers diversification, liquidity, and scale compared to other social impact funds.
AGC’s leadership and management team are passionate about putting money to work in support of actual business transactions in places where it can make a big difference. We have deep experience in fund management, trade finance, and international development. We believe in the power of markets to create shared prosperity and social stability when every qualified business owner can say yes to opportunity. By offering a commercial financial service that more business can access in more communities, we support the development of financial ecosystems for the long term.