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BHP International Launches Trade Finance Business

January 08, 2013, 07:07 AM
Filed Under: Industry News

BHP Markets announced the formation of BHP Finance Inc., 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.

“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.”

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.

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 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.

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