Northern Arc Capital and CredAble securitization of commercial loans nearby
Chennai: The non-bank financial company (NBFC) Northern Arc Capital and the fintech CredAble platform have announced the closing of the commercial securitization transaction backed by invoices under SEBI guidelines. The CEO and CEO of Northern Arc Capital, Kshama Fernandes, said: “This transaction will allow companies to access the securitization market that has so far been dominated primarily by NBFC. As part of the transaction, we have also extended our own platform to non-financial entities.
Invoice financing is one of the oldest financial products and has traditionally been dominated by banks and some NBFCs. Depending on the transaction, discounted invoices that sellers (suppliers) raise to large anchors (buyers) on the fintech platform are then assigned as accounts receivable to the securitization trust.
Commenting on the benefits of transactions to investors, Kshama said: The structure allows investors to take indirect short-term exposure to companies, which may not have typical loan requirements. This helps in diversifying your overall portfolio. In addition, since the anchors are non-financial entities, the exposure is not under the NBFC limits for investors.