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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