TAP Financial Forms Subsidiary For Supply Chain Funding

To help customers with supply chain funding and order growth, British boutique merchant bank TAP Financial Partners has created a subsidiary called TAP Fulfillment LLC, according to a Monday (Feb. 1) announcement.

TAP Financial Partners Managing Partner Bill Fickling said a number of the company’s customers are geared toward building out their businesses. Fickling noted that “this opportunity presented itself” for one customer, and the company soon determined that the service was desired throughout its network of small companies.

“By offering purchase order and multi-jurisdictional supply chain financing to clients, we’re helping grow their book of business and enabling them to reach a much higher rate of development than could have otherwise occurred,” Fickling said in the announcement.

TAP says it will satisfy a gap in the supply chain management, purchase order and finance market for customers that wouldn’t have funding choices accessible or those that discover that the choices they can access are too expensive and intricate to be attractive.

According to the announcement, TAP Financial Partners serves a chosen collection of small and medium-sized enterprises (SMEs) with consulting, restructuring, debt and equity fundraising services, and up-listing guidance.

Keeping the trade engines running is essential to the rebound of the worldwide economy, but even as deals are made and sales are achieved, companies aren’t guaranteed the cash flow to maintain their operations.

Currently, business-to-business (B2B) payment terms are in dramatic flux, while supply chain interruptions have brought about bottlenecks that leave some suppliers in short supply of funds.

For that reason, trade finance will be a key part of the international recovery calculus. Linking B2B suppliers on their unpaid invoices can provide them with the financial stability they require to keep trade flowing, but it comes with its own set of challenges — for the supplier as well as financiers.

Velotrade CEO and Co-Founder Gianluca Pizzituti previously told PYMNTS about the risks financiers have to lessen in the trade finance space, the function of information in lessening these threats, and the changing role of invoice finance to assist B2B firms in withstanding the most unsteady market many have seen for a long time.