Supply Chain Financing

A financing solution designed to help MSME pay suppliers

 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

PARAMETER FEATURES
Product Type Supply Chain Financing
Maximum Loan 100% of invoice value
Tenor Minimum Tenor – 7 daysMaximum 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 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

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