GRIP Finance works with businesses and asset owners to enable access to unlock liquidity faster, improve flexibilities within trade flows and improve efficiencies within the capital stack.
GRIP Finance is a strategic business unit operating the following services:
Working Capital Solutions
GRIP’s working capital solutions are targeted at both sides of the balance sheet and designed to unleash liquidity trapped within supply chains through:
An asset-based financing (borrowing utilising the hypothecated inventory) based upon the value of pledged inventory, whereby inventory itself serves as collateral for the loan.
- Generate liquidity – unlock cash trapped within inventory for deployment, to enhance return on capital employed,
- Minimise opportunity costs – slow moving inventory can lock up liquidity, utilise extended inventory holding periods to maximise borrowing capacity,
- Optimise working capital cycle – unlocking liquidity trapped within inventory enables settling suppliers to minimise trade cycles and enhance credit profile,
- Free-up storage – hypothecated inventory can be stored in assigned warehouses and utilise garnered liquidity and storage space for new purchases,
- Speed of execution – eligible hypothecated inventory provides lenders with added security, which in turn makes it easier to obtain liquidity swiftly.
Receivable finance unlocks working capital by allowing companies to sell/assign their invoices to financiers for early payment and shortens the cash-conversion cycle.
- Swift monetisation of trades – suppliers can receive funds on invoice approval as opposed to awaiting gestation of credit period,
- Optimise working capital cycle – unlocking liquidity trapped within debtors (receivables) enables settling suppliers to minimise trade cycles and enhance credit profile,
- Quality of sales – Purchasers’ credit profile is the ultimate determinant in being able finance receivables, by assessing prospects prior to executing a sale with financiers will ensure retaining the ‘quality of the sale’ and also to acquire market share without the burden of ‘bad debts’ emerging during expansion phases,
- Offer competitive terms – ability finance receivables enables one to offer competitive terms to incentivise sales with minimal burden on working capital,
- Scalable & Dynamic – receivable financing facilities can be tailored to suit business cycles (based on underlying customer profiles) and are not determined by the subject business’s financial/credit profile.
Payables financing, also referred to as supply chain finance or reverse factoring, is a set of solutions (usually initiated by buyers) that optimise cash flow by allowing businesses to lengthen their payment terms while providing the option for the suppliers to get paid early.
- Optimise working capital cycle – payables financing enables business to maximise internal resources without impinging upon supplier credit terms,
- Generate liquidity – the ability to operate negative working capital cycles improves liquidity available for deployment within the business,
- Supply chain assurance – by meeting supplier payments early or on a timely basis secures ones position as a credible market participant and ensures timely deliveries,
- Competitive edge – by offering early payment terms to suppliers, one can gain an edge over peers, maximise margins and garner reliable supplies for onward trade.
Asset Backed Lending
Utilising the borrower’s assets GRIP is able structure and source financing options to unlock capital deployed (for acquisition) and enable leverage to augment access to liquidity.
GRIP’s solutions are designed for investors to retain long-term economic benefit of their holdings in listed equities, gold and crypto whilst availing immediate access to capital at competitive terms.
- Generate liquidity – unlocking liquidity trapped within investment holdings enables utilisation within other activities and maximising returns,
- Ownership retention – retain ownership of assets and continue to garner income (eg: dividends, share of profits) and capital gains (as applicable and if relevant),
- Maintain investment strategy – holding and asset allocation strategies need not be interrupted for immediate liquidity needs,
- Non-purpose lending – there exists no requirements to specify use of proceeds when availing financing from alternative financiers, unlike dealing with conventional lenders,
- Non-recourse lending – in the event of non-repayment of proceeds obtained under non-recourse financings, ONLY the underlying assets will be utilised by the financier to settle outstanding amounts and will not impact any other assets of the borrower (unlike when a guarantee is provided utilising other assets), nor the borrower’s credit profile.
Financing solutions designed for tankers, bulk carriers to multi-purpose vessels utilising charter fees as the principal source of repayment to other varieties of pleasure crafts to enable Businesses and GRIP’s wealth advisory clients secure long-term funding.
- Plan, Structure and Execute – build your asset acquisition strategy utilising the GRIP network of specialist financiers,
- Refinancing – unlock liquidity trapped within operating assets for business growth,
- Sale and leaseback – unlock liquidity in exchange for predictable fixed monthly payments,
- Operating lease – obtain tax-deductible fixed payments and reduce risk by offloading all future asset value to the lessor.
GRIP focuses on combining financing expertise within an integrated wealth portfolio to structure and enable UHNW Investors to identify and acquire executive aircrafts and rotorcrafts for personal usage, charter usage as well as commercial usage.
- Operating lease – finance upto 100% of a depreciating, non-core asset and obtain tax-deductible fixed payments and reduce risk by offloading all future asset value to the lessor,
- Greater Privacy – public records of the FAA would identify the financier as the owner of the aircraft, reducing visibility of the end user within public records.