Alternative financier Legion Trade Finance has announced the launch of a £20mn financing initiative for the UK fashion industry.

Legion intends to boost the buying power of UK SMEs involved in the industry as they plan for the Spring/Summer 2015 season.

According to a statement, Legion has financed UK and textile goods with an onward sale value of over £5mn in recent months, and the £20mn allocation to UK textile and clothing SMEs can be increased subject to demand.

“We are investing heavily in the fashion sector, offering much-needed capital to a vital industry in our economy,” says business development director at Legion, Paul Levy.

“We have funded many businesses in the UK textiles and clothing industry at all levels of the supply chain and value proposition. SMEs need to make important buying decisions yet funding is not easily accessible from traditional sources.”

Legion provides structured trade finance solutions to clients, typically starting at £250,000, to enable them to pay suppliers.