ApexPeak launches investment fund to keep up with $100m USD monthly demand for invoice discounting
ApexPeak, an invoice discounting business, launches its Global Receivables Fund with a target size of $200m USD. This will co-finance the invoices to meet soaring demand ($100m USD requested monthly) for ApexPeak’s service.
The invoice discounting service is highly desired as more SMEs yearn for better cash flows. According to a recent survey from Lloyds TSB, 30 per cent of all SMEs are experiencing cashflow difficulties, and 58 per cent blamed the problem on late payments.
In its first 7 months, ApexPeak turned a neat profit and raised $1.8m USD in its Series A round. Now, 1 year in, the business approves 6 or more deals a week, where invoices average $70,000 USD. Deals last about 60 days and with zero defaults to date.
“We pride ourselves in ApexPeak’s solid automated due diligence procedures and innovative approaches to originating scalable sustainable deal flow,” says Gakim Solomons, CEO and Co-founder of ApexPeak. “The fund allows Apex Peak to scale its business model globally and afford investors the opportunity to participate.”
Unlike traditional financing options, ApexPeak helps SMES from varying sectors (pharmaceuticals, construction, oil & gas and more) turn invoices into cash rapidly. After getting full documentation, most invoices can be processed in only 4 days so SMEs can gain fast and affordable access to working capital.
Up to 80% of the invoice amount is advanced upfront with a discount fee levied per month. Finally, insurance companies cover the counter party risk of these invoices so it is essentially risk-free.
In 2014, ApexPeak, an investee of GHX - an investment holding company, has major plans to expand its global presence. Despite having a presence in Singapore and Africa, the service has been used by multi-national companies from the UK and around Europe. In the coming months, ApexPeak will expand its presence to the Middle East and Hong Kong to be closer to potential customers.
Based on these stellar results and expansion plans, ApexPeak is upbeat about its future. The new fund targets to provide investors returns of 8% - 10% per annum with capital guarantee backed by a leading A-rated insurance company.
“A low interest rate environment in Asia has resulted in many investors looking for good risk adjusted returns. ApexPeak is able to offer investors the opportunity to obtain above average yields with no downside really,” says Solomons.
Invoice discounting is a global opportunity. In 2013, there are approximately 125 million companies in the world, where 99% are SMEs. ApexPeak can provide a much-needed solution and its Global Receivables Fund will be a great chance for others to cash in.
For more information on the Global Receivables fund, please contact email@example.com.
+65 9451 9142
ApexPeak is a new capital provider to small and medium size enterprises directly and those transacting on electronic invoicing networks. Our simple and innovative solution helps ease the cash flow problems faced by most SME owners today by offering them early payments on their invoices.
By offering a fast, flexible and affordable service, ApexPeak removes the lengthy, manual and restrictive processes required by banks. As a result, our customers no longer need to worry about cash flow problems and can instead focus on growing their businesses.
GHX (Gilcrux Holdings) is one of the world’s most innovative investment holding companies. Founded by South African serial entrepreneur, John Fearon, GHX holds his equity in a growing number of exciting startups and established businesses.
Spread across many industries, the only similarities between these entities are that they are game changing and go after grand ideas. GHX supports passionate entrepreneurs in their quest to improve the world - aiming to find interesting ways to disrupt established fields and do it bigger, faster and better.