Alternative Lender eCapital Buys UK-Based Advantedge Commercial

Alternative lender eCapital is expanding its global footprint by acquiring U.K.-based Advantedge Commercial Finance, according to a Tuesday (Dec. 1) press release.

Miami-based eCapital said the move will allow it to expand its geographical footprint beyond North America and add to its specialty lending solutions, such as factoring.

eCapital is a leading provider of financing to small and medium-sized businesses (SMBs), offering such services as invoice factoring, factoring lines of credit, and asset-based lending. Its customers, up until now, have been largely in the U.S. and Canada. The company also offers financing services through its Commercial Freight, Freight Factoring and Gerber Financial units. Its digital platform allows customers to access services through a wide variety of devices.

Also catering to small and mid-sized businesses, Advantedge specializes in services such as invoice factoring, invoice discounting, selective invoice financing, and bad debt protection. The company operates offices throughout the U.K. in Thames Valley, The Midlands, Newport, Manchester and Glasgow.

Financing for the merger was provided by credit funds managed by Ares Management, which also supported eCapital’s acquisitions of Bibby Financial Services and Prosperity Funding earlier this year.

Though somewhat controversial, factoring and supply chain financing have been able to provide needed cash flow to businesses, especially during the pandemic crunch.

In recent years, the financial services ecosystem has elevated the debate about the role that factoring and supply chain financing programs play in supporting SMBs. Increasingly, critics have argued that such programs can hamper small businesses’ bottom lines, force vendors to accept unfair payment terms and ultimately become an unsustainable and expensive source of funding.

But as pandemic-fueled late payments and supply chain disruptions continue to threaten the livelihood of businesses around the globe, factoring and supply chain finance have, in many cases, proven to be a valuable cash flow strategy for B2B buyers and suppliers alike.