Sygnus Investment Bahamas launches receivables purchase platform backed by US$10 million IDB Invest facility to support business liquidity.

Sygnus Investment Bahamas Inc. (SIB), a subsidiary of the Sygnus Capital Group, has begun introducing a receivables financing platform in The Bahamas. It is intended to help qualifying businesses access cash more quickly by converting approved outstanding invoices into immediate liquidity. The initiative is being supported through funding provided by IDB Invest, the private-sector investment arm of the Inter-American Development Bank (IDB) Group.

The platform is supported by institutional capital from IDB Invest and Sygnus, including a loan facility of up to US$10 million from IDB Invest to SIB and an initial equity investment by Sygnus Credit Investments Limited of approximately US$1 million, with capacity to scale up to US$5 million over time.
The funding is expected to be used by SIB to purchase eligible receivables from approved suppliers in The Bahamas, initially focusing on eligible suppliers and contractors with verified receivables linked to public-sector and infrastructure-related projects, before scaling to a broader base of eligible government suppliers, SMEs and suppliers to private-sector counterparties.

SMEs play a central role in The Bahamas’ economy, The platform is therefore intended to support a critical segment of the business community by improving access to liquidity tied up in unpaid invoices.

“This partnership represents an important step in our strategy to deepen Sygnus’ presence in The Bahamas while delivering a practical solution to a real business challenge,” said Gregory Hines, Vice President, Asset Backed Investment & Projects, Sygnus Capital Limited. “Through Sygnus Investment Bahamas Inc., we are creating a platform that will help eligible suppliers convert unpaid invoices into timely liquidity, allowing them to better manage cash flow, execute contracts, support employment and reinvest in their businesses.”

The solution is being designed to purchase eligible short-term trade receivables from suppliers operating across key sectors, including construction and infrastructure, tourism and hospitality, manufacturing, information and communications technology, utilities and other service-based industries.
As the phased rollout progresses, the solution is expected to help eligible suppliers better manage cash flow, meet operating obligations, execute new contracts, strengthen supply chains and reinvest in growth.

The partnership also includes a technical cooperation component under which Sygnus and IDB Invest will collaborate on market studies to identify priority sectors, supplier segments and areas of unmet working capital needs in The Bahamas, including women-led businesses and other high-impact SME categories.

Source: EyeWitness News