Supply Chain Financing
This is also referred to as Payable Finance or Reverse Factoring.
Supply chain finance is a solution to MSME Anchor customer to pay the suppliers upon delivery and submission of invoices.
This facilitates financing for suppliers to the Anchor customer to obtain early payment once they submit their invoices
Key Product Features
PARAMETER | FEATURES |
Product Type | Supply Chain Financing |
Maximum Loan | 100% of invoice value |
Tenor |
|
Party For Booking Limit | Anchor/supplier |
Disbursement Fee / Structuring Fee | 1% |
Loan Repayment Party | Anchor /MSME Customer |
Late Payment Fees | 1.25% of outstanding amount on Anchor |
Interest | Prevailing bank lending rate currently at 1.08% per month |
Payment Processing Fees | Kes . 250 |
Appraisal Fee | Nil |
Fees | All Fees Are Recovered Upfront To The Anchor |
Security
For limits up to 2M –Chattels i.e. Motor vehicle discounted at 150%
Cash and Land for exposures above 2M
Benefits of the Parties Involved
Benefits to Anchor
- The solution allows the Anchor to maintain or extend the payment terms with the Bank
- Ensuring the Anchor suppliers have access to working capital.
- Negotiate Better pricing for purchased goods and services and enjoy cash discounts
Benefits to Suppliers
- Alleviate the cash flow challenge of suppliers by accelerating conversion of receivables (invoices) into cash.
- Extend financial access to suppliers who lack collateral – using approved invoices as a form of credibility and surety.
- Help businesses to grow with enhanced access to finance
Reduce days of sales outstanding (debtor’s days).
