What We Do

Receivables Financing in Underserved Markets

Advance Global Capital (AGC) specializes in financing receivables of small and medium businesses (SMEs) in underserved markets, with a focus on invoice discounting. AGC unlocks the value of receivables as financeable assets, particularly for businesses owned by women and other under-represented groups through local financial institutions (“factors”) or directly via invoice discounting technology platforms.

Market Opportunity

All over the world, SMEs struggle to find financing to grow their businesses. They lack the collateral, financial history, and track record required by traditional lending institutions. Emerging markets without strong financial ecosystems lack sufficient alternatives to big banks. The International Finance Corporation estimates that there are 65 million formal micro, small and medium businesses (MSMEs) in developing countries have an unmet financing need of $5.2 trillion every year[1]. These businesses generate income and create the majority of new employment opportunities in emerging markets—a huge opportunity to access new markets and generate scalable, positive social impact.

Invoices as Financeable Assets

With invoice discounting, a factor purchases invoices as a discount and advances funds to the supplier immediately, based on the financial history of the buyer. Invoices are held for 30, 60, 90 or 120 days and the full amount of the invoice is collected from the buyer when it comes due.

  • The supplier receives immediate payment, less the discount, so they can buy more materials and hire more people to grow their business.
  • The factor collects on the full amount of the invoice, making a predictable, profit on a short-term investment.
  • The investor realizes predictable returns with a low default rate and low correlation to traditional assets.

Trading Fairly and Responsibly

AGC conducts its business transparently, in accordance with international standards and with the intention of reducing risk and creating economic value for investors, partners and SMEs. We conduct lengthy due diligence up front to ensure that our values and practices are aligned. Then we work directly with financial institutions to support knowledge transfer, build capacity, and help develop stronger financial ecosystems for sustainable economic growth. Our funding partners benefit from:

  • Flexible, reliable funding for innovative, inclusive, financial services.
  • Expert support in finance, legal and marketing.
  • Promotion of environmental, social and governance (ESG) policies and practices that are integrated throughout the investment process.

AGC brings robust due diligence, ongoing risk assessment, and better business practices to local markets to build trust and create a stronger foundation for sustainable economic growth and social stability.

[1] MSME Finance Gap. Assessment of the shortfalls and opportunities in financing micro, small and medium enterprises in emerging markets. International Finance Corporation, 2017. https://www.ifc.org/wps/wcm/connect/a2aef7a2-6d46-433c-ab02-06cd00591cea/121264-WP-PUBLIC-MSMEReportFINAL.pdf?MOD=AJPERES