Demica & Jardine Norton team up to boost UK SME financing

In a strategic move geared towards empowering small and medium-sized enterprises (SMEs), Demica, the supply chain finance provider, has declared a collaboration with Jardine Norton, a dynamic trade finance company. Unlike large companies, SMEs often encounter difficulties in accessing trade finance due to their size and limited resources. However, this partnership looks set to remedy this issue. London-based Demica has supported Jardine Norton in increasing its financing capacity, footing an increased financing facility of up to GBP £200 million, thus enabling the latter to fuel its growth and more than double its financed portfolio.

Working in various sectors such as manufacturing, energy, and transport, Jardine Norton primarily serves UK SMEs that supply large, creditworthy corporate customers. Jardine Norton assists SMEs by financing the invoices directed towards these larger companies, aiding the SMEs in accessing essential working capital. Essentially, this process forms a bridge between invoicing and payment received, supporting SMEs in maintaining their financial stability and fostering growth.

Ceri Rees, a partner at Jardine Norton, stated, "When seeking an increased funding capacity, we approached Demica to speak to a number of prospective funders on our behalf. We were keen to ensure that any new partner could offer greater flexibility, and we knew that working with Demica would allow us access to a diverse range of potential partners, leading to a seamless transition. Achieving this has helped us to scale up our operations and improve the working capital available for SMEs, including many based in the UK."

This partnership also underlines a broader trend in the supply chain finance ecosystem, showcasing how platforms like Demica can benefit not only trade finance providers like Jardine Norton but also the SMEs at the end of the chain.

Commenting on this partnership, Matt Wreford, CEO of Demica, said, "By supporting invoice discounting platforms like Jardine Norton, more SMEs gain access to working capital funding. We're excited to use our unique combination of financial expertise and advanced technology to deliver this funding programme for Jardine Norton, supporting their continued growth and playing a pivotal role in financing the supply chain."

Jardine Norton, a well-established, partner-owned company based in Cardiff, helps SMEs with their working capital requirements. Providing finances through purchasing clients' invoices fills a critical need for fast-growing companies that traditional banks have increasingly shied away from. After the pandemic, Jardine Norton has seen a remarkable expansion in its business and believes its product offering, high service levels, and effective use of technology will foster significant growth across the UK in the future.

Demica's expertise lies in powering trade finance programmes of global trade banks and corporations. Its proposition is straightforward: a cloud-based, user-friendly platform that enables financial institutions and corporations to automate and scale their working capital solutions. These programmes, financed by a varied range of banks and institutional investors, equip companies to strengthen their supply chains and redeploy capital to promote growth. Currently, Demica manages approximately USD $28 billion of assets.