AGC’s Impact Report 2020

Delivering essential liquidity to small businesses worldwide.

At Advance Global Capital, our mission is to support local, responsible and inclusive economic growth by delivering well structured financing options that help underserved small businesses survive and grow. We believe private capital has the potential to do good in the world, and that SMEs, especially those owned by women, are worth supporting.

The last couple of years have seen unprecedented challenges in every corner of society, in every corner of the world. Multiple waves of COVID-19 have come and gone, but in many countries the link between transmission, and and serious illness is beginning to weaken as an increasing number of people receive their vaccinations. We are beginning to enter the new normal.

It is very much the case, however, that a two-tiered recovery will take place, with the poorest countries and communities lagging behind the richest—both economically and medically. Throughout the pandemic, SMEs have been disproportionately affected when compared to their larger peers: as of February 2021, an estimated 24% of small businesses have closed worldwide. On the ground in developing markets, we have seen the pandemic continue to disrupt the daily life of our partners as they struggle to access vaccines.

We established our fund to provide flexible working capital to those SMEs that need it most. We firmly believe that private capital, when invested well, can be a force for good, and this approach has been more important than ever of late. Our funding provides formal businesses the opportunity to grow, but also, perhaps more importantly, the opportunity to survive when times get tough. A well-financed SME means food on the table for families, local taxes paid to fund schools and infrastructure, and community groups supported by SME owners. This is all made possible with our investors’ capital, and for that we are eternally grateful.

To demonstrate the impact of our investor’s capital and our hardworking team, our Impact Report for 2020 is now complete. Many thanks are due to the active participation of our local financial partners and their SME clients.

As of Q1 2021, cumulatively we have extended $4.15 billion in funding to 16,403 SMEs supporting 666,649 jobs in 78 countries, with an average transaction size of $5,569.

Some highlights of our social impact for 2020 include:

257,299 SME jobs supported
48% of SMEs financed have fewer than 10 employees
47% of SMEs are led by women

About Our Impact Strategy

The smaller a business, the less power and fewer options it has, and the more vulnerable it is to external forces, such as climate change or a bank’s willingness to lend. Our funding is accessible to the smallest businesses with the least access to bank financing—such as women and other minority-owned companies. Our specialists provide tailored financing to our financing partners who then deliver flexible, transparent, inclusive working capital to SMEs. Our strategy is closely aligned with these UN Sustainable Development Goals: Goal 5: Gender Equality, Goal 8: Decent Work and Economic Growth, Goal 9: Industry Innovation and Infrastructure, and Goal 10: Reduced Inequalities.

We strive to be ethical, honest, and responsible business partners that leave the world better than the way we found it. Our unique impact offering, combined with a 6-year track record of solid and consistent investment returns, continues to attract the interest of investors globally, including high net worth individuals, family offices, endowments and foundations, funds of funds, and wealth advisors specializing in impact investing.