Alternative asset manager and peer-to-peer lending platform backer Fasanara Capital has partnered with invoice financing marketplace Incomlend to launch a £44.14m alternative financing programme focussed on environment social, and governance (ESG).
The ‘Incomlend ESG Invoice Financing Programme’ is aimed at small- and medium-sized enterprises (SMEs) looking to grow while positively affecting their communities.
Incomlend will be assessing the SMEs’ ESG plans by using international standards, such as the United Nations (UN) Principles on Business and Human Rights, the UN Sustainable Development Goals and the Paris Agreement.
The platform said those that pass the ESG test and due diligence will receive quick turnaround invoice financing solutions, which can help them grow and introduce more ESG focussed changes, such as adopting greener technology.
The ‘Incomlend ESG Invoice Financing Programme’ is Asia’s first ESG-focused structured finance programme and also connects institutional investors who wanting to support ESG-centric businesses with socially responsible, sustainable SMEs.
“We believe that ESG is not a hindrance but an accelerator of SMEs’ growth, and more needs to be done to aid ESG-focused SMEs,” said Morgan Terigi, co-founder and chief executive of Incomlend.
“Through this joint alternative financing programme with Fasanara Capital, we aim to nurture more responsible companies globally and enable them to grow their business and profitability.
“We hope these ESG-centric SMEs can become successful role models that their peers emulate, thereby encouraging more businesses to focus on ESG.”
“Incomlend shares our commitment to support ESG-focused enterprises, and we are excited to partner with them to pioneer this new funding instrument,” said Francesco Filia, chief executive of Fasanara Capital.
“SMEs represent approximately 90 per cent of companies globally and have tremendous collective potential to make a positive impact.
“With Incomlend’s global reach and proven expertise, we are confident that they can maximise our investment and deliver working capital at scale to the right SMEs to drive meaningful change worldwide.”
In September, Fasanara Capital launched a €250m (£213m) fintech fund to invest in working capital financing solutions for SMEs across the EU. Fasanara Capital has previously invested in UK P2P platforms including FundOurselves.