Pelorus Capital launches trade finance offering for SME brokers

The company aims to support businesses like importers, wholesalers, and manufacturers to gain financing to buy stock and bridge the gap between purchase and payment.

According to Pelorus Capital, its offering allows for larger amounts of trade finance and a specialist trade finance credit policy.

The trade finance provider further stated its specialist facility has been designed without an insurance wrap structure, allowing funding deals of up to $3 million.

In addition, it can assist SMEs to separate property from their trade finance facilities, allowing them to use property equity for other purposes, such as additional property investments.

Founder and chief executive of Pelorus Capital, Hadley Fieliciano, said the company will provide a new option for brokers in the trade finance market, which many imports “rely on to drive over $300 billion in international merchandise imports” per year on average.

“Australia’s banks have reduced their trade finance sector exposure over the last two to three years. This has left a massive hole for those SME businesses in the $1m–$20m turnover range, and even those up to the $50m turnover mark,” Mr Fieliciano said.

“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.

“Our team’s knowledge and experience in trade finance allows us to assess deals differently. 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.”

Pelorus Capital secured an initial debt facility to allow funding of up to $120 million in supplier invoices and intends to work with brokers and other intermediaries to distribute working capital offering to SME businesses.

“Trade finance is an important cog in the functioning of Australia’s economy,” Mr 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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