CBA targets suppliers of firms with pay platform
3 months ago, 13 June 17:44
Commercial Bank of Africa (CBA) in partnership with a Nairobi-based financial technology (fintech) firm Ennovative Capital, have launched an online platform to facilitate immediate payment for suppliers of companies.
The platform, Reverse Factoring or Supply Chain Financing, works by having corporate buyers approve and submit invoices to CBA and the bank in turn pays them with recourse to the buyer.
The country’s largest privately owned lender yesterday, said this will ensure suppliers are able to access payments before the due date.
CBA Kenya chief executive Jeremy Ngunze said the platform will give participating firms access to liquidity.
“We have leveraged on technology to address some of the key concerns affecting businesses today,” said Mr Ngunze.
The platform is expected to spur growth among SMEs by availing working capital faster to enable them finance new projects.
Pan-African non-bank financier African Guarantee Fund (AGF) will be sharing risks through financial guarantees to CBA.
In 2017, CBA secured a Sh9.297 billion ($90 million) facility from the African Development Bank (AfDB) for on-lending to SMEs.
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