Sancus has announced a new “enhanced protection” option for funders seeking additional credit protection over and above the 90% credit insurance cover currently available on supply chain financing opportunities.
The move comes in response to feedback from funders as the Sancus Group continues to improve its financing solutions across the business, responding to the changing landscape in alternative finance.
Supply chain finance opportunities offered by Sancus are typically short-term credit-insured, with 90% of the capital exposure being recoverable from the credit insurer in the event of a relevant claim. Where an opportunity does not benefit from credit insurance, Sancus provides 10% first loss cover to funders under a funder protection policy. The change announced today will allow funders to bring both forms of protection together and benefit from full cover on these opportunities. Funders can now shape their exposure according to their risk-return appetite.
Dan Walker, managing director of Sancus Finance, comments:
“The enhanced protection option provides funders with greater choice, underlines the confidence that we have in our underwriting processes and demonstrates a strong alignment of interests with our funders.”
The Sancus Group has seen consistent growth over the last four years, having provided in excess of £800m of funding to SMEs and entrepreneurs. This growth has been supported by continued enhancement to its funding solutions and sustained emphasis on strong, diligent risk management procedures.
“We are committed to ensuring that SMEs and their owners have access to funding to support their businesses. To ensure this funding is available, we must also offer our funders a range of options to support their own risk/return profiles and their growing expectations in an ever-changing market. Increasing the menu of options available to funders in this way will in turn help us to improve access to flexible funding to businesses, allowing them to realise their growth plans.”