Incomlend unveils invoice financing programme for Bangladesh firms

The working capital solution allows the companies to finance and increase the production volume of their sweaters and stock up on garments that are in season and in demand. One of Sadat Apparels’ key customers, a US-based clothing wholesaler, is looking to stock up on its products in preparation for the increased seasonal demand for sweaters during Fall-Winter, providing new revenue streams for the company, Incomlend said in a statement.

Typically, it takes Fashion Tex Asia and Sadat Apparels up to 120 days to cash in an invoice. However, the extended credit terms can potentially impair cash flow and impede their ability to boost their manufacturing output and source merchandise to meet demand upticks. Incomlend is founded in Singapore and with offices in Europe, India, and Southeast Asia. It connects small and medium enterprises (SMEs), like Fashion Tex Asia and Sadat Apparels, globally with communities of investors, enabling them to buy and sell individual invoices in an invoice exchange platform.

The quick turnaround facility provided by Incomlend enables Sadat Apparels and Fashion Tex Asia to cash in an invoice as early as three days after its goods are shipped to the buyer. The companies now have the working capital to cover their operational expenses and meet new orders coming from the US. The Invoice Financing Programme also offers Sadat Apparels and Fashion Tex Asia the financial agility to pursue new growth opportunities as the appetite for garments from Bangladesh continues to soar globally, according to Incomlend.

Based on Bangladesh’s Export Promotion Bureau data, the country’s exports saw a sharp increase of 112 per cent in May 2021, compared to 2020. The growth is primarily due to the rebound in demand for ready-made garments (RMG) as major markets worldwide reopen their economies. According to McKinsey, the RMG sector accounts for 84 per cent of Bangladesh’s exports.

“With Incomlend Invoice Financing Programme, we can concurrently retain our customers by offering competitive payment terms and freeing up our working capital. We now have access to a steady cash flow to pump back into the production cycle and increase turnover and profit, contributing significantly to our business growth. We look forward to working with Incomlend for the long-term,” Fashion Tex Asia and Sadat Apparels, managing director Rezaul Karim Jahid said in a statement.

“Bangladesh is home to many apparel manufacturing SMEs and is an emerging export powerhouse in South Asia. As a company with a proven experience in the garment industry, Incomlend strongly supports these SMEs in capitalising on positive market conditions with our quick turnaround financing facility. We are enabling manufacturers like Sadat Apparels and buying houses like Fashion Tex Asia to scale their business and expand their footprint overseas by providing them with competitive and alternative non-recourse working capital solutions,” Incomlend CEO and co-founder, Morgan Terigi said.

Fibre2Fashion News Desk (GK)