Small business owner

Jardine Norton throws a lifeline to UK SMEs through Demica funding partnership

Published 16th April 2024 by Demica in News

Expanded £100m facility will broaden Jardine Norton's range of funding options tailored to help UK SMEs survive and thrive.

In a strategic partnership aimed at empowering small and medium-sized enterprises (SMEs) through improving access to working capital, Demica, a leading provider of working capital solutions, is pleased to announce its collaboration with Jardine Norton, an innovative trade finance company.

Access to trade finance can prove more challenging for SMEs, given their size and limited resources. Jardine Norton supports SMEs by offering alternative funding sources.

Specialising in selective invoice discounting, Jardine Norton primarily serves UK SMEs in various commercial sectors, such as manufacturing, energy and transport, that typically supply large, creditworthy corporate customers. Jardine Norton’s role is to finance the invoices directed towards these larger companies, thereby enabling SMEs to secure essential working capital. This process effectively bridges the gap between invoicing and receiving payment, supporting SMEs in maintaining their financial stability and growth.

As trade finance companies like Jardine Norton grow, they require larger financing facilities to fuel their expansion. Demica was retained by Jardine Norton to source an increased financing facility of up to £200 million to support this growth. Using Demica’s extensive distribution network, such financing was provided by a globally recognised asset manager. As a result of this increased financing capacity, Jardine Norton aims to more than double the size of its financed portfolio, to meet increased demand from SMEs seeking financial support for their own growth initiatives.

Ceri Rees, a partner at Jardine Norton says: “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 highlights a broader trend in the supply chain finance ecosystem, showcasing how platforms like Demica benefit not only trade finance providers like Jardine Norton but also the SME customers at the end of the chain.

Demica CEO, Matt Wreford 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.”

About Jardine Norton

Jardine Norton is a long-established, partner-owned company headquartered in Cardiff that seeks to support SMEs in their working capital requirements. By providing financing through the purchase of its clients’ invoices, it meets an important need for fast-growing companies from which traditional banks have increasingly retreated. Jardine Norton has experienced significant growth in its business since the end of the pandemic and believes its product offering and high levels of client service, coupled with its use of technology, leave it well placed for significant growth across the UK in the years to come.

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