KCB enters invoice discounting deal
By Jackson Omondi Okoth | May 14th 2015
Kenya Commercial Bank (KCB) has entered into a deal with an online firm to facilitate early settlement of invoices between traders.
The bank's partnership with eBiashara (Africa) Ltd, an integrated online financial provider, is being undertaken under a supply chain finance programme. The online firm will supply the IT platform which the bank will use to offer online invoice discounting services.
Currently, small firms are experiencing delays in settlement of invoices due to lack of access to working capital and unfavourable commercial terms and the new platform could offer them new lease of life.
Under the new arrangement, KCB will be working with key buyers and an established supplier base to automate the early payment of approved invoices. The programme is a buyer-led invoice discounting method and is based on the buyer introducing it to its own suppliers.
"This partnership comes at a time when small and medium-sized enterprises have been the focus of financial inclusion," said George Mutiga, KCB's Head of Trade Finance during the signing ceremony yesterday.
KCB is building on its expertise in trade finance to develop products that will benefit its retail and corporate customers, through robust supply chain finance infrastructure.
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