Supply Chain Financing
A financing solution designed to help MSME pay suppliers
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
| PARAMETER | FEATURES |
|---|---|
| Product Type | Supply Chain Financing |
| Maximum Loan | 100% of invoice value |
| Tenor | Minimum Tenor – 7 days maximum Tenor- 180 days |
| 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 is currently at 1.08% per month |
| Payment Processing Fees | Kes . 250 |
| Appraisal Fee | Nil |
| Fees | All Fees Are Recovered Upfront To The Anchor |
Features
-
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 challenges of suppliers by accelerating the 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).
Requirements
-
- 3 years audited accounts
- Company/ Business profile
- Banks statements (12 months) if new customer to Co-operative Bank
- 12 months payments data of the client from anchor
- Credit application
