Toronto, Ontario (PRWEB) January 07, 2013
BHP Markets today announced the formation of BHP Finance Inc. (“BHP Finance”), an alternative finance company. BHP Finance will focus on providing cash flow funding solutions to small and medium sized businesses in North America and Asia through various specialized products such as accounts receivables funding, trade finance, and purchase order finance.
Accounts receivable funding is a common source of financing as an attractive alternative to traditional financing for companies experiencing rapid growth, having temporary financing needs, or otherwise possessing good quality accounts receivable but lacking sufficient bank credit facilities or working capital. Over 80% small and medium sized enterprise (SME) decision makers experienced cash flow issues in the past year, most commonly because customers made excuses for slow payments per a recent industry study. As a result, in the last year 23% of SMEs wrote off a bad debt, 32% had customers negotiate to pay in monthly installments, and 21% had difficulty meeting tax payments on time.
“The ongoing volatility and tightening of the credit markets over the years, has made it challenging for SMEs to obtain cash flow solutions to support and build their businesses,” said Steven Haasz, President and CEO of BHP Finance and Managing Director of BHP Markets. “Our focus is to partner with business owners on a long term basis and provide them with cash flow solutions that will enable them to free up their capital so they can continue to be innovative, entrepreneurial and successful in operating their businesses.”
BHP Finance will advance up to 90% of eligible accounts receivable available within 24 hours of submitting invoices and will make available up to $10 million for each client. For trade finance transactions, BHP will advance up to 80% of eligible accounts receivable within 24 hours of submitting invoices and is able to partner existing lenders to finance export receivables. Other services include supplier guarantees, standby letters of credit, and commercial letters of credit. BHP Finance plans to immediately commence funding of transactions within North America and Asia.
BHP Finance will provide fast, relevant and flexible funding solutions across a wide range of industry sectors including manufacturing, distribution, wholesaling, automotive, transportation, staffing, apparel, services and government. With a deep understanding of the trade and credit cycles of SMBs, BHP Finance will offer personalized capital solutions for each of its clients. “We see a significant opportunity to be the premier alternative finance company that will provide business owners with efficient, consistent, and responsive necessary capital solutions,” said Haasz. “Our goal is to be a global leader in developing and providing unique cash flow funding solutions to serve the global small and medium sized market.”
About BHP Finance Inc.
BHP Finance (http://bhpfinance.com) is an alternative finance company that provides global small and medium sized business with fast, relevant and flexible cash flow funding solutions through various financial products. BHP Finance is an affiliated company of the BHP Group of Companies and operates from its offices in Toronto, Canada and Hong Kong.
About BHP Markets.
By providing lending solutions, BHP has continued to evolve from a dedicated alternative asset manager and principal investment firm with its back office managing over $2.6 billion in assets as a single family office model (SFO). Through its asset lending and capital markets operating entities, BHP currently finances securities, equipment, real estate, aircraft assets and accounts receivable using creative new products that help institutional and corporate clients with asset specific solutions. In the area of securities lending, BHP is one of the largest providers of emerging market liquidity to institutions and private investors.
BHP International Markets Limited (http://www.bhpmarkets.com) is a leader in the capital markets. From innovative asset management strategies to the creation of liquidity through innovative stock equities lending, BHP Markets effectively deploys capital to convert opportunity into results. For more information, contact: jdombroski(at)bhpadvisors(dot)com.