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CBA partners with the African Guarantee Fund to boost suppliers

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http://bdafrica.com
Kenya’s largest privately owned bank, Commercial Bank of Africa (CBA) has partnered with the African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) and Nairobi-based fintech firm- ECap, to introduce a solution that will see suppliers of Corporate Institutions, receiving payment for goods and services offered,
without having to wait for the stipulated credit period.

The solution, known as Reverse Factoring or Supply Chain Financing, borrows from the traditional invoice discounting facility given by banks.

However, unlike the traditional product, which was offered to suppliers, Reverse Factoring is extended to Corporate Customers as long as they have a good credit standing with CBA. Their suppliers are the eventual beneficiaries.

CBA becomes the first Kenyan bank to offer the solution through an Open platform, which gives participating buyers access to liquidity.

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