FundsPeople Article - Fasanara Capital: Engineering Stability in Trade Receivables Finance

How technology, self-liquidation, and collateralisation may create resilience.

In a world where public markets remain volatile and banks continue to withdraw from lending, Fasanara Capital has developed a distinctive approach to trade receivables finance that is both self-liquidating and structured to manage risk effectively.

Founded in London in 2011, Fasanara now manages over USD 5.5 billion as of today and partners with more than 140 fintech originators across 60 countries. Its approach combines cutting-edge data science with institutional-grade credit oversight to channel capital directly to the real economy — particularly small and medium-sized enterprises (SMEs) underserved by traditional banks.

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Technology Meets Credit Discipline

Fasanara’s philosophy merges AI-driven data analytics with fundamental credit expertise to transform trade receivables from a fragmented niche into a scalable institutional asset class. The firm’s systems screen tens of thousands of invoices and originators monthly, applying multi-stage due diligence that includes operational audits, financial modelling, and site inspections. Fewer than 10% of platforms pass onboarding, which helps our aim for high standards and quality.

Every underlying asset is self-liquidating — invoices typically mature within 60–90 days, and repayment occurs naturally through debtor payments.

Many receivables are further collateralised or insured, featuring first-loss protection, over-collateralisation, or credit insurance with global partners. These structural layers absorb potential losses and are intended to help absorb potential losses and support Fasanara’s risk-managed, income-oriented approach, which seeks to moderate mark-to-market volatility.

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Investment Process and Deal Sourcing

The firm’s Fasanara Credit Model (FCM) assigns proprietary ratings (AA–CCC) to debtors based on behavioural data, macro-overlays, and payment history. Monitoring tools aim to identify changes in debtor quality or concentration, supporting timely risk management.

Portfolio construction emphasises diversification. A typical portfolio includes tens of thousands of receivables, diversified across sectors, countries, and originators, with strict caps at each level. This granularity is intended to reduce risk and volatility through diversification.

The approach may include financing SMEs that sell to investment-grade corporates like Siemens or Nestlé to maintain a certain credit quality.

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Collateral, Reinvestment, and Transparency

Receivables are often backed by contractual assignments granting legal rights over payment flows. Where applicable, first-loss tranches or insurance policies provide further buffers. Once repaid, cashflows are swiftly reinvested.

All exposures are independently priced and audited, with monthly NAV reporting and Big Four oversight. The strategy is fully hedged against FX and interest-rate risk, which helps with transparency.

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A Multi-Layered Risk Framework

We aim to embed risk control at every stage:

• Originator screening and ongoing reassessment through an automated traffic-light system.
• Transaction-level protections, including collateralisation, subordination, and insurance.
• Independent Risk Committee oversight of all new counterparties.
• Continuous surveillance for delinquencies or behavioural shifts, prompting tactical exits.
• External validation through independent administrators and quarterly reviews.

The natural amortisation of invoices may help limit residual exposure even in stressed markets.

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Real-Economy Impact and Investor Appeal

For Italy, Spain, and other SME-driven economies, Fasanara’s strategy aims to offer both safety and purpose. By funding over 105,000 SMEs globally, it helps support growth, employment, and supply-chain resilience.

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Built-In Protection

Fasanara’s model — uniting self-liquidation, collateralisation, technology, and disciplined risk architecture — demonstrates that alternative credit can be engineered to aim for both stability and impact.

As CEO Francesco Filia notes:

“The future of asset-based finance lies in designing exposures that protect capital by construction. Self-amortising, collateral-backed, data-monitored credit is how we turn receivables into investable infrastructure.”

Fasanara’s strategies focus on linking institutional credit processes to real-economy collateral through transparent structures and data-driven monitoring.

See FundsPeople Aritcle here.

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Disclaimer This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell, or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investors or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with their financial professionals. The views and opinions expressed are for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. Any changes to assumptions that may have been made in preparing this material could have a material impact on the information presented herein by way of example. Past performance does not predict or guarantee future results. Investing involves risk; principal loss is possible. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Fasanara Capital Ltd, is authorised and regulated by the Financial Conduct Authority (“FCA”).

Important information on risk Investing involves risk. The value of any investment and the income from such can go down as well as up, and you may not get back the full amount invested. Past performance is not a guarantee of future returns. Changes in the rate of exchange may also cause the value of overseas investments to go up or down. This information represents the views of Fasanara Capital Ltd and its investment specialists. It is not intended to be a forecast of future events and/or guarantee of any future result. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. There is no assurance that an investment will provide positive performance over any period of time. This information does not constitute investment research as defined under MiFID.