Tungsten plc have signed an agreement with Insight Investment Management (Global) Ltd under which Insight has agreed to invest in Tungsten Early Payment receivables, eligible invoices originated by Tungsten in Europe and North America.

Insight, a leading global asset manager responsible for over £318 billion in assets under management, has agreed to purchase approved-to-pay, investment grade receivables originated through the Tungsten Network e-Invoicing platform.  Terms of the agreement with Insight, which is subject to certain regulatory approvals, are not disclosed. Insight is owned by BNY Mellon.

Funding for Tungsten early payment programme

The funding to be provided under this multi-year agreement is expected to total several billion pounds. This financing, together with the existing capital within Tungsten Bank, will provide the Company with all the required funding at this stage for its invoice finance proposition, so the Company no longer needs to pursue alternative financing options, such as a bond issue. Tungsten had previously announced that the majority of capital required for its supply chain finance activities would be funded by third parties. 

Tungsten Bank also provides the opportunity to raise deposits from clients as well as from the Buyer customers on the Tungsten Network, which would enable the Buyers to deploy cash balances to finance their supply chains.

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CTMfile take: Early payment discount programmes are becoming more and more important for SMEs and other suppliers for their need liquidity management support as banks withdraw from this type of support due to Basel III pressures. The scale of the lending will be huge. This is just the start.