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Supply@ME Capital
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===What's the company's main offering(s)? === ==== Flagship offering/audience ==== =====Who’s the target audience of the company’s flagship/first product?===== The primary audience is companies that are 1) inventory-intensive (i.e. manufacturing companies) and 2) willing and able to take higher levels of risk [(for higher levels of return), such as early-stage companies (i.e. companies that are less than two years old)] (i.e. early-stage inventory-intensive companies).<ref>Typically, companies that are less than two years old find it particularly challenging to raise sufficient or any funds. The finance cost of the Supply@Me Capital type of finance is the highest, and, therefore, we expect the finance form to be used by those who are unable to use the other forms (i.e. those that are less than two years old).</ref> ===== What's a major problem that the target audience experience? ===== "The widespread belief ... is that the lack of finance constitutes the main obstacle to the growth of [small-and medium-sized enterprises]." European Bank for Reconstruction and Development.<ref>https://www.sciencedirect.com/science/article/pii/S0883902698000275#FN1</ref> As indicated in the above quote, a major problem that the target audience experience is a lack of profits, more specifically a lack of financing. Indeed, the Federation of Small Businesses, a lobby group for the UK’s smallest companies, said a survey of members founds that successful applications for bank loans and other financing had dropped precipitously, with less than half of applications successful in the third quarter of 2022. The lobby group added that the smaller a business was, the less likely its request for a bank loan was to be approved. =====What's a key solution to the problem?===== The solution is Supply@ME, a web application that enables early-stage inventory-intensive businesses to raise funds. What makes the finance platform unique is that it raises the funds by selling [and then at a later stage (e.g. 90 days), buying-back, at a higher price (than the sold price)] the inventory of the businesses, using a type of financial agreement called the true sale inventory agreement.<ref name=":8" /> Evidence suggests that the true sale inventory agreement enables early-stage inventory-intensive companies to raise funds more efficiently, ultimately leading the companies to improve/maximise their profits<ref name=":3" />. Note, with a true sale inventory agreement, there is no legal obligation to return the finance, thereby reducing the financial risk of the fundraising company. ==== Secondary offering/audience ==== The secondary audience is inventory-intensive companies that follow the teachings of Islam (i.e. Islamic inventory-intensive companies). Currently, inventory finance is treated as a loan, involving interest (payments). Interest is considered to be a sin in Islam (Quran 2:278-279), and, therefore, Muslims should avoid engaging in transactions that involve interest. Accordingly, the current form of inventory finance excludes 1.97 billion people (or 25% of the global population). Because the finance on the Supply@Me Finance platform is structured in a way in which the inventory is actually sold (i.e. it's not treated as a loan, and, therefore, there is no associated interest), the platform is allowed to be used by Muslims (i.e. Muslim-permissible inventory finance platform). Indeed, the Supply@ME platform has been approved as being compliant within the principles of Sharia, Islamic law, thereby making the platform one of the first shariah-compliant inventory finance platforms.
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