Singapore fintech nets $60m to launch ESG-focused SME financing program

Incomlend, a Singapore-based online invoice trading platform, has secured US$60 million from  Fasanara Capital, a European alternative asset manager, to launch a financing program for small and medium-sized enterprises (SMEs) focused on the environmental, social, and governance (ESG) sector.

Called Incomlend ESG Invoice Financing Programme, the initiative will give qualifying SMEs access to Incomlend’s invoice financing solutions. The program also aims to help investors connect with ESG-focused SMEs.

Incomlend CEO and co-founder Morgan Terigi / Photo credi: Incomlend

Incomlend will assess the SMEs’ ESG plans using international standards, such as the United Nations (UN) Guiding Principles on Business and Human Rights, the UN Sustainable Development Goals, and the Paris Agreement.

“With improved cash flow, SMEs will also have the financial health and resources to make more and bolder ESG-centric changes within their organization and supply chain,” said the company in a statement. Incomlend added that one of the changes SMEs can introduce to their businesses is embracing greener technology to reduce their carbon footprint.

Incomlend also said that the initiative is Asia’s first ESG-focused structured finance program. Highlighting a growing interest among investors in the ESG space, the startup cited a study by the Global Sustainable Investment Alliance that said sustainable investments in the US, Canada, Japan, Australasia, and Europe saw a 15% increase from 2018 to 2020, reaching US$35.3 trillion in value.