24th Feb 2015 09:26
LONDON (Alliance News) - Small business lender Inspired Capital PLC and software developer Proactis Holdings PLC Tuesday revealed a collaboration under which they will develop an accelerated payment facility for small- and medium-sized enterprises in the UK.
Small- and medium-sized enterprises - those with fewer than 250 employees and less than EUR50 million in turnover - have been looking to finance providers such as Inspired Capital in the wake of the financial crisis, as the traditional high street lenders focused on sorting out their balance sheets and positioning themselves to deal with new and stricter regulation on banks.
According to Inspired Capital and Proactis, the accelerated payment facility will speed up the settlement of suppliers' pre-qualified invoices.
The facility will be launched to potential customers later this year, and a commercial agreement with a minimum term of 12 months will be finalised ahead of that point.
Inspired Capital Chief Executive Brian Cole said the collaboration is an important step in building scale in the market.
"More than ever, UK SMEs are being squeezed by larger players in the supply chain. This new product will provide a powerful cash-flow management tool for companies in the UK and form a key part of our financing proposition for SMEs, further supporting a heavily underserved market," Cole said in a statement.
Proactis Chief Executive Rod Jones said the business is evolving from a buyer-led software author to now include supply chain finance "enablement".
Inspired Capital shares were untraded on Tuesday after closing at 17.50 pence on Monday, while Proactis shares were up 2.2% at 92 pence.
By Samuel Agini; [email protected]; @samuelagini
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