The company, in a statement, highlighted that – alongside partner StormHarbour Securities LLP – it has now successfully completed the legal documentation, process definition and operating structure for a repeatable and scalable securitised investment product.
Eligible client companies are ready to implement the inventory monetisation process and their financial advisory teams have approved the structure and derecognition accounting treatment of the inventory monetisation transaction, it added.
Next steps towards the launch of the securitisation product are advancing and include negotiations to move from a ‘single transaction’ to a monetisation programme for the whole of 2021, representing a scale-up with a more flexible structure.
It is also working to negotiate a potential minority equity investment by an ‘inventory funder’, the identity of which has yet to be disclosed by the company.
[email protected] highlighted that by the ‘early New Year’ eligible client companies for the securitisation product will receive formal, confidential communication from SYME disclosing the funder’s identity and subsequently it intends to disclose to the information to the market also.
Additionally, the company noted that it is also widening talks with Quadrivio Group relating to its potential involvement in all securitisation issuances for the platform.
[email protected], through its securitisation programme, supports client businesses by allowing them to effectively sell their stock for an immediate boost to working capital. The service is not suitable for companies in financial difficulty or those that have inventories that they are struggling to sell, the company noted.