NASSAU, BAHAMAS: Sygnus Investment Bahamas Inc. (SIB), a member of the Sygnus Capital Group, has commenced the phased rollout of a receivables purchase platform designed to help eligible Bahamian businesses convert approved unpaid invoices into timely liquidity through a facility financed by IDB Invest, the private sector arm of the Inter-American Development Bank Group.
The platform is supported by institutional capital from IDB Invest and Sygnus, including a loan facility of up to US$10 million from IDB Invest to SIB and an initial equity investment by Sygnus Credit Investments Limited of approximately US$1 million, with capacity to scale up to US$5 million over time.
The funding is expected to be used by SIB to purchase eligible receivables from approved suppliers in The Bahamas, initially focusing on eligible suppliers and contractors with verified receivables linked to public-sector and infrastructure-related projects, before scaling to a broader base of eligible government suppliers, SMEs and suppliers to private-sector counterparties.
The phased rollout, future scaling and any expansion of the platform will remain subject to internal approvals, regulatory considerations and market conditions.
SMEs play a central role in The Bahamas’ economy, accounting for approximately 98% of business licenses and about 47% of total employment. The platform is therefore intended to support a critical segment of the business community by improving access to liquidity tied up in unpaid invoices.
The rollout of the programme represents a key step in Sygnus’ strategy to strengthen its presence in The Bahamas and help eligible suppliers access liquidity from unpaid invoices more efficiently. It builds on Sygnus’ regional track record of mobilising capital for public and private sector projects across the Caribbean, including infrastructure and development initiatives in The Bahamas.
“This partnership represents an important step in our strategy to deepen Sygnus’ presence in The Bahamas while delivering a practical solution to a real business challenge,” said Gregory Hines, Vice President, Asset Backed Investment & Projects, Sygnus Capital Limited. “Through Sygnus Investment Bahamas Inc., we are creating a platform that will help eligible suppliers convert unpaid invoices into timely liquidity, allowing them to better manage cash flow, execute contracts, support employment and reinvest in their businesses.”
The solution is being designed to purchase eligible short-term trade receivables from suppliers operating across key sectors, including construction and infrastructure, tourism and hospitality, manufacturing, information and communications technology, utilities and other service-based industries.
As the phased rollout progresses, the solution is expected to help eligible suppliers better manage cash flow, meet operating obligations, execute new contracts, strengthen supply chains and reinvest in growth.
The partnership also includes a technical cooperation component under which Sygnus and IDB Invest will collaborate on market studies to identify priority sectors, supplier segments and areas of unmet working capital needs in The Bahamas, including women-led businesses and other high-impact SME categories.
These studies will help inform the phased rollout of the platform and identify areas where receivables purchase solutions can have the greatest developmental impact.
The platform is also expected to contribute to the development of The Bahamas’ financial market by creating a disciplined channel through which institutional capital, including potential domestic institutional participation over time, can be mobilised into short-term receivables-backed assets linked to real economic activity.
In addition to its equity investment, Sygnus Credit Investments Limited will provide credit support as guarantor for the IDB Invest facility, reinforcing alignment between IDB Invest and Sygnus as the platform is rolled out.
“At its core, this platform is about helping Bahamian businesses convert earned receivables into liquidity faster and more predictably,” Hines said. “Our focus is on building a disciplined and transparent platform that gives all stakeholders confidence in how receivables are verified, purchased and settled.”
The Bahamas was selected as the first market for this solution because of the clear opportunity to support suppliers involved in the Government’s infrastructure delivery programme and the country’s robust private sector activity.
Over time, Sygnus expects to evaluate opportunities to roll out the model across the wider Caribbean, subject to market demand, local partnerships and applicable regulatory approvals.
SIB plans to roll out the platform in phases, beginning with a controlled pilot before scaling into a broader technology-enabled receivables purchase platform across The Bahamas.
Over time, the platform is expected to support digital onboarding, invoice submission, verification workflows and streamlined processing for eligible suppliers.
