Sygnus launches receivables purchase platform
Gregory Hines
Alternative investment firm {/span}Sygnus Investment Bahamas Inc. (SIB) has launched a new receivables purchase platform aimed at helping Bahamian businesses unlock cash tied up in unpaid invoices, backed by institutional funding of up to $10 million from IDB Invest and additional capital from the Sygnus Group, a statement from Sygnus revealed.
The statement explains that the platform will initially target approved government suppliers and contractors with verified receivables linked to public-sector and infrastructure projects, before expanding to a broader range of government suppliers, small and medium-sized enterprises (SMEs) and private sector counterparties.
Sygnus said SMEs account for approximately 98 percent of business licenses in The Bahamas and employ about 47 percent of the workforce, making access to working capital critical to the sector.
The receivables purchase platform is expected to serve businesses operating in construction, infrastructure, tourism, hospitality, manufacturing, information and communications technology, utilities and other service industries.
The company said the platform will initially be rolled out through a controlled pilot before evolving into a technology-enabled system featuring digital onboarding, invoice submission, verification and payment processing.
Sygnus and IDB Invest will also collaborate on market studies to identify sectors and businesses with the greatest working capital needs, including women-led businesses and other high-impact SME categories.
The initiative also seeks to deepen The Bahamas’ financial markets by creating an avenue through which institutional capital can be invested in receivables-backed assets linked to real economic activity.
“At its core, this platform is about helping Bahamian businesses convert earned receivables into liquidity faster and more predictably,” Hines said.
“Our focus is on building a disciplined and transparent platform that gives all stakeholders confidence in how receivables are verified, purchased and settled.”
The Bahamas was selected as the first market for the initiative because of opportunities associated with the government’s infrastructure program and the country’s active private sector, Sygnus said, adding that it intends to evaluate expansion across the wider Caribbean over time.
A $43 million government obligation related to infrastructure works carried out under a public-private partnership (PPP) arrangement became at point of contention between the government and the opposition, with Minister of Finance Michael Halkitis having to defend a similar kind of transaction as standard financial practice, while Free National Movement (FNM) Leader Michael Pintard is questioning why the arrangement was structured in the way it was.
The issue stemmed from contractors involved in infrastructure projects selling receivables owed by the government to the African Export-Import Bank (Afreximbank) through a factoring arrangement.
Sygnus launches receivables purchase platform | Business | thenassauguardian.com
