This offers more speed and flexibility to brokers in the trade finance market
Australia’s only specialist trade finance company has unveiled a new offering that will provide brokers with more speed and flexibility when sourcing working capital for SMEs buying stock overseas and domestically.
Pelorus Capital aims to support businesses like importers, wholesalers, and manufacturers by providing them with the finance they need to buy stock.
In a statement, the company said it can offer larger amounts of trade finance faster than competitors as well as provide a specialist trade finance credit policy and a team with more than a decade of experience supporting business growth with trade finance.
Hadley Fieliciano (pictured above), founder and CEO, said Pelorus Capital is offering an innovative new option for brokers in the trade finance market, which many importers depend on to drive more than $300 billion in international merchandise imports on average every year.
“Australia’s banks have reduced their trade finance sector exposure over the last two to three years,” Fieliciano said. “This has left a massive hole for those SME businesses in the $1m to $20m turnover range, and even those up to the $50m turnover mark.
“Australian businesses rely on trade finance to grow and import the goods we all need and want. Pelorus Capital will provide more businesses showing strong growth prospects with the means to purchase stock both overseas and here at home.”
Pelorus Capital’s specialist facility does not have an insurance wrap structure, enabling it to fund deals of up to $3m. It also has the ability to approve deals faster because it does not require insurer approval.
At banks, property security is required for trade finance deals. Not so at Pelorus Capital, with the firm providing SMEs the ability to separate property from their trade finance facilities, so they can use property equity for other purposes, such as additional property investments.
“Our team’s knowledge and experience in trade finance allows us to assess deals differently,” Fieliciano said. “We can look at things like the relationship between the supplier and the end customer, as well as future prospects, rather than just looking backwards.
“If an SME has been sacrificing for five years and lands a big contract, we’re in a unique position to make an assessment not on what their balance sheet says about last year, but on their future, and back them with unrivalled speed-to-market.”
Pelorus Capital said it has secured an initial debt facility enabling it to finance around $120m in supplier invoices. The company is planning to work with brokers and other intermediaries to distribute the working capital offering to Australian SMEs.
“Trade finance is an important cog in the functioning of Australia’s economy,” Fieliciano said. “We look forward to working with brokers to offer this new trade finance option, so that growing SMEs have access to working capital faster and more flexibly than ever before.”
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