The new supply chain finance offering from PrimeRevenue and AIG aims to cater to mid-market, non-investment grade companies, by providing financing with the credit risk insured by AIG’s trade credit insurance.
The solution provides funds that enable suppliers to take early payment at a small discount, while enabling buyers to standardise and potentially lengthen their payment terms. This provides low cost access to working capital on both sides of the transaction.
Until now, supply chain finance platforms have been limited to supporting the largest, investment grade businesses, hence the opportunity identified by PrimeRevenue and AIG to serve mid-market, non-investment grade companies.
The ongoing financing requirement will be organised by PrimeRevenue Capital Management, by providing investment access to banks as well as non-bank entities such as insurance companies, pension funds, hedge funds and capital market investors looking for stable returns.
The offering will be rolled out to other European countries and the US in coming months.
American International Group (AIG) is a global insurance organisation serving customers in more than 100 countries and jurisdictions.
Headquartered in Atlanta, US, with offices around the world, PrimeRevenue offers financing options through its OpenSCi product suite.
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