Putting Capital to Work
Advance Global Capital, Ltd. (AGC), is a global impact investment manager that supports responsible and inclusive economic growth in underserved communities worldwide. We specialize in financing invoices for small and medium businesses (SMEs) – the engine of economic growth and job creation and the foundation of resilient local communities.
A Thoughtful 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 (“fin tech”) 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 for know-your-customer and risk management best practices of traditional financing.
An Alternative Asset Class – With Impact
AGC works with forward-thinking investors to put their capital to work with their values. We provide advice and support that integrates financial and relevant environmental, social and governance (ESG) support to investment funds with a focus on invoice discounting for SMEs. 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 and positive impact. Invoice discounting that targets SMEs in underserved markets also offers diversification, liquidity, and scale compared to other social impact funds.
Experienced & Diverse Leadership
AGC’s leadership and management team are passionate about putting money to work in support of real business transactions in places where it can make a big difference. We have deep experience in investment management, trade finance, foreign exchange management, impact investing and small business development. We believe in the power of markets to created shared prosperity and social stability when every qualified business owner can say yes to opportunity. By offering a commercial financial service that more businesses can access in more communities, we support the development of healthy, inclusive financial ecosystems for the long run.