Global Merchant Fund Corp. (Global Merchant) arranges syndicated short-term working capital programs for middle-market companies and their suppliers in the US, Canada and Mexico. Global Merchant’s syndicated working capital programs include domestic and cross border Trade Payables, Factoring and Asset Backed Loans (ABL) financing programs.
Global Merchant finances its working capital programs by either directly funding the transaction using its balance sheet; or co-funding alongside other lenders as part of a broader lending syndicate arranged by Global Merchant. Global Merchant’s lending syndicates consist of a panel of well rated banks and financial institutions. While Global Merchant remains its Client’s sole point of contact, the Client benefits from gaining access to a pool of lenders and the funding capacity of Global Merchant and its lending partners. This compares favorably to bilateral working capital programs where a single lender may have funding or credit appetite constraints.
Benefits to participating lenders:
- As the introducer, arranger and lender Global Merchant offers prospective co-lenders sub-participation in its syndicated working capital programs. The programs range in size and are typically uncommitted.
- Global Merchant offers full spectrum transaction servicing which includes: Supplier & Buyer onboarding; underwriting; deal structuring; documentation; credit insurance; Trust account set up; reporting; billing and collections.
- Transactions are booked using Global Merchant’s proprietary software platform. The platform is robust and can handle single currency, multi-currency, domestic and cross border transactions.
- Lenders benefit from Global Merchant’s in-depth knowledge of industry products and strong risk management framework and culture.
Benefit to clients of a syndicated facility:
- Syndicated funding structure gives a client access to a pool of lenders, therefore removing a client’s commercial dependence on a single lender. The use of a funding syndicate also facilitates quicker facility upsizing relative to a single lender.
- Facility can be single or multi-currency (USD, EUR, CAD, MXN).
- Payment to single or multiple suppliers through a simple, streamlined platform.
- Payments to domestic and foreign suppliers permitted.