Wow! Serious Potential17 Aug 2020 20:27
Supply@ME brings its inventory monetization solution to UK manufacturers
News
14 AUG 2020
Stock exchange-listed inventory fintech aims to buy £200m worth of stock from UK manufacturers in pilot scheme
COMMENT
City of London skyline, Supply@ME concept
Supply@ME is in talks with a City instituional lender about bringing inventory monetization to the UK
Timothy Adler
Timothy Adler
Supply@ME, the London-based inventory finance fintech, plans to buy £200m worth of stock from British companies in September.
What this means is that £200m worth of value locked up in bought stock can be released to British companies, rather than gather dust in warehouses.
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The target is to involve 10 UK manufacturers in the pilot scheme by the end of 2020.
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And Supply@ME, which moved its headquarters from Italy to London in March, says it has €1.4bn (£1.3bn) of pent-up demand for its inventory monetization solution lined up for next month.
For now it is raising €400m (£360m) through institutional investors worldwide, which will enable to buy the first tranche of stock from 40 companies.
However, there are another 47 companies queued up to use its unique inventory monetization solution.
How Supply@ME works
Supply@ME frees up working capital for manufacturers who buy raw materials in and then have it sitting there while they turn them into finished goods.
Once approved as a seller, a manufacturer sells the inventory to Supply@ME, which uses blockchain to record the transaction on its digital platform.
The London stock exchange-listed company then owns the inventory, although it never physically leaves the manufacturer’s warehouse. The manufacturer can slowly buy the stock back at cost plus VAT and Supply@ME’s fee of between 6 per cent and 8 per cent.
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Or the manufacturer can use the newly released capital to buy more stock and keep the whole process rolling.
Other solutions such as invoice finance lend against unpaid invoices, not inventory itself.
Although banks do lend against inventory, often it is only for 20 per cent to 40 per cent of the stock cost. Not only that bank borrowing affects your credit rating.
Supply@ME claims its fintech solution is unique.
Alessandro Zamboni, CEO of Supply@ME, said: “Our business goal was to create a new service for working capital needs of companies focused on manufacturing. We think that it’s a unique opportunity in the market that provides inventory monetization. There are many players that are focused on receivables but no players that are focused .......
https://www.growthbusiness.co.uk/supplyme-brings-its-inventory-monetization-solution-to-uk-manufacturers-2557850/
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