First Sentinel PLC owns 50.1% of Capable Finance Ltd, a fintech company who provide SMEs with supply chain finance solutions via their innovative platform.

Supply chain finance enables businesses to extend their payment terms with their suppliers while also providing the option for their suppliers to get paid early.

It is a financing solution that effectively offers short-term credit that optimises working capital for the buyer and generates additional operating cash flow for the supplier – minimising the risk across the supply chain and benefiting both parties. Financing institutions also benefit from a reduced risk, due to the strong credit profiles of participants and high levels of security, while enjoying attractive returns on the funds lent.

Capable streamlines this process by linking all parties involved in the transaction – buyer, seller and financing institution – through one platform, lowering the costs and improving the efficiency of the process. 

Capable Finance is using the funds raised to add a number of carefully selected and fully credit-checked new clients from the SME sector to its roster. All these clients will have a turnover of between £50m and £500m a year. Bondholders’ returns of 7.5% per annum will be generated from the interest payments and commissions created through this new business.