This engine offers one product: invoice financing. Karncy Financing advances working capital against a verified, unpaid invoice — nothing else. Each exposure is funded at transaction level rather than company level: priced against the strength of the buyer, supported by a verified receivable and settled when that receivable is collected.
Single-product scope. Karncy Financing does not offer vendor financing, purchase-order financing, supply-chain programmes, term loans or equity. If there is no raised invoice for goods already delivered or services already completed, there is no transaction.
Structure
Self-liquidating
Underwriting
Verified receivables
Allocation
Manager discretion
Origination focus
Where we look first.
The Fund prioritizes transactions originated within established commercial ecosystems where counterparties, documentation and payment behavior are already well understood.
Well-established businesses
Reputed counterparties
Recognized corporates
Financially stable debtors
Documented, traceable trade flows
Underwriting framework
Five layers of diligence.
Every transaction is screened against the same five-pillar framework before it enters the portfolio.
1. Counterparty Quality & Market Reputation
The Fund intends to primarily finance invoices or receivables associated with reputed and well-graded counterparties.
Well-graded or highly reputed customers
Companies with established operational track records
Strong market credibility and payment history
Counterparties with recognized brand presence or industry standing
Stable commercial relationships within their sector
Manager evaluates
• Industry reputation
• Credit standing
• Historical payment trends
• Market perception
• Business continuity
• Operational stability
2. Existing Business Relationship Evaluation
Preference is given to vendor–debtor pairs with verifiable, recurring trade activity that reduces counterparty uncertainty.
Ongoing or recurring commercial relationships
Verifiable historical transaction activity
Identifiable payment cycles and trade patterns
Long-standing supply chain relationships
Manager reviews
• Duration of business relationships
• Historical transaction volumes
• Past invoice settlement behavior
• Repeat order frequency
• Commercial dependency analysis
3. Healthy Cash Flow & Payment Cycles
Underwriting prioritizes predictable conversion of receivables to cash and sustainable working capital behavior.
Predictable cash conversion cycles
Consistent receivable collections
Sustainable working capital behavior
Reasonable payment durations
Manager assesses
• Historical receivable aging
• Collection efficiency
• Operating cash flow trends
• Debtor payment timelines
• Liquidity indicators
• Business seasonality risks
4. Invoice & Transaction Verification
The Fund only invests where the underlying commercial transaction is verifiable, enforceable and undisputed.
Underlying invoices are genuine and enforceable
Goods or services have been delivered or completed
Payment obligations are contractually valid
No material disputes are identified
Supporting commercial documentation is available
Verification procedures
• Invoice validation
• Purchase order review
• Delivery confirmations
• Counterparty confirmations
• Financial and operational due diligence
5. Risk Controls
Each transaction is sized within portfolio-level guardrails on concentration, leverage and jurisdictional exposure.
Diversification across sectors and counterparties
Loan-to-value ratios
Concentration exposure
Legal enforceability
Jurisdictional risks
Macroeconomic and industry-specific risks
How it works
Transaction-level, from onboarding to close.
Karncy Financing funds a receivable, not a balance sheet. The sequence below describes how the Karncy Platform originates and administers each exposure before it enters the Fund's portfolio.
Step 01
Onboard the SME and its documentation
Step 02
List the receivable and verify the underlying buyer
Step 03
Underwrite the counterparty, invoice and payment behaviour
Step 04
Deploy, monitor collection and close the transaction
Not a term loan
Exposure is transactional and self-liquidating. It is sized to a specific receivable and retires when that receivable is collected, rather than amortising over a fixed multi-year schedule.
Not equity
Financing is non-dilutive. The SME retains full ownership, valuation and board control; the Fund takes no shareholding through this engine.
Not unsecured
Each transaction is supported by verified receivables, documented commercial contracts and collection arrangements assessed as part of underwriting.
