First Sentinel PLC acquired 80% of the invoice purchasing company Perennial Enterprises in December 2017. Based in Sydney, Perennial Enterprises purchases invoices primarily from the crash repair industry. This allows their customers to free up working capital that would otherwise be locked up by lengthy payment terms. In turn, Perennial can generate very strong returns that are paid relatively quickly.

Investment highlights:

  • Quarterly interest payments

  • Five-year bond with option to redeem every 12 months

  • If held for the full five-year term, redeemed at 105% of principal

  • ISA and SIPP eligible

  • Bond listed on London’s AQSE Exchange

  • £1m credit insurance

Perennial’s focus is low-risk invoices, where the customers are typically large blue-chip companies, insurance firms or government bodies. These invoices are usually pre-approved for payment and paid in under 30 days, with very low rates of default. In the rare case of default, Perennial has security over the customer’ assets. 

The company will use the funds raised by this bond to expand its operations across the whole of Australia. The bond is insured by Equinox Global and secured with a floating charge over cash raised and invoices receivable. 

If you are looking to invest in a similar proposition, please see our First Sentinel EURONEXT Bond (7.5%), funding Capable Finance, a fintech company who provide supply chain finance solutions to SMEs via their innovative platform.