Supply Chain Financing

Business Solutions

This is also referred to as payable finance or reverse factoring.  Supply chain finance is a solution to MSME Anchor customers 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 the 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 the outstanding amount on Anchor
Interest The 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
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).

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Visited Products

Ecommerce

  Get more customers by accepting Online Card Payment via Co-op Bank eCommerce solution Do you promote your goods and services on the online space, e.g via a website, social […]

Payment Solutions

Fast, secure, & easy online payment processing

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Our agency banking service (Co-op Kwa Jirani) This is a convenient and simple banking model to suit your lifestyle as well as offer you convenience.   What services are available […]

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