US-based receivables finance arranger Finacity has launched Finacity Capital Management (FCM), a securitisation vehicle for companies with smaller receivables portfolios.

As banks continuously retrench from financing small businesses due to new regulatory requirements, the company believes the new solution will help increase trade by offering small corporates a capital market alternative for their working capital needs.

FCM is initially capitalised with US$50mn, and will allow companies to take advantage of the lower cost of funds offered by securitisation.

“In the past, a small receivables securitisation solution would not have been a viable alternative, as the costs of establishing the programme would typically have outweighed the lower cost of funds that securitisation offered. FCM has streamlined the documentation and data analysis to make the securitisation process smoother, thus making it a cost-efficient alternative for smaller companies,” a Finacity spokesperson tells GTR.

FCM also offers the possibility of achieving off-balance sheet treatment under GAAP and IFRS.