KPMG has joined up with C2FO in a strategic alliance that will see the US online platform providing supply chain finance to UK SMEs
The Big Four firm is claiming that the move could prove to be a “game changer” in opening up access to finance to small business in the UK.
“The traditional bank lending model has changed, perhaps for ever, as a result of the 2008 crash,” said Simon Collins, KPMG’s UK chairman.
“We know from some of our smaller and medium-sized clients that they continue to struggle to borrow from the banking high street. However, myriad sources of finance, such as asset-based lenders and crowd-sourcing platforms, are filling the gap.
“C2FO will provide a much-needed non-bank source of working capital finance to suppliers and will help many small firms stabilise their supply chains. I believe this will prove a really interesting addition to the increasingly diverse mix of funding available to businesses, particularly SMEs.”
The online platform was established in 2008 in Kansas City and currently provides more than $1bn (£0.6bn) in early payment for suppliers every quarter. Participants are buyers and suppliers who use the marketplace to increase profit and accelerate cash transfers between themselves.
It currently has more that 1m global market members, including a number of Fortune 1000 companies that are industry leaders in retail, transport, medical, logistics and manufacturing.
The two businesses have signed a three-year deal to work together in the UK. Neither has paid consideration nor acquired an equity stake.
The move follows on from the partnership agreement that KPMG announced last week with Xero to provide select online accounting and tax services to SMEs using the cloud.
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