A company supplying small business loans and invoice finance - would this company be classified as an FI?

Hello everyone,
We have a partner whose business model comprises:

  1. invoice financing - they pay their clients’ invoices and then obtain the invoice payment direct from their clients’ customers
  2. small business loans - they lend companies money for machinery and equipment purchases. These are unlisted companies.

I’d love an answer asap if possible - thank you.

Hi again,
I know this community is extremely slow-to-answer, so just checking-in in a last attempt for an answer - thanks all.
We will have to go ahead with our ‘best guess’ I belive.

Please see the revised Table 5.2 of the draft Near-Term Financial Sector SBT Guidance Version 2 for some more detailed specifications that are proposed. As both should fall under loans, the minimum coverage requirements would depend on a few things such as what entity they are extended to (e.g., consumer, SME, or corporate; and if the latter, potentially what sector it belongs to and whether it is listed/private) and if the loan is short- or long-term.

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Hi @HowardS thanks so much for helping with this answer. From Table 5.2 it appears to me that it would be optional to include a short-term (less than 1 year) loan to a non-fossil fuel company?

Thanks again!

Based on the proposed Table 5.2 in the draft Near-Term Financial Sector SBT Guidance Version 2, yes.

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Thanks so much for your help!