Small and medium-sized businesses have been hardest hit by the economic knocks and uncertainty of the pandemic, which has weakened their liquidity.
Pandemics usually lead to reduced cash circulation in any economy and financial institutions such as banks and other lending institutions shy away from financing businesses that they deem “high risk”. They are only deemed high risk because they are vulnerable and consumers will be holding on to their cash reserves, only to spend on the most essential needs at the time.
Most financiers shy away from financing these high-risk businesses because they will have to take up the responsibility and foot the costs to bear the burden as a non-performing loan. This in turn has a snowball effect on the overall financial performance of the financing institution. Some financiers even end up making the process too expensive that a small business may not be able to bear the costs that come with the financing.
These challenges are part of the reasons why SMEs and MSMEs are usually on the lookout for financing institutions and facilities that favour them and are not too expensive.
IMFact ,a Smart Finance alternative to traditional bank lending for Kenyan SMEs in supply chain businesses offers solutions that are favourable to small, medium and big businesses in Kenya. They come in to increase a business’s financial stability and optimise its working capital, thus eliminating constraints related to overhead costs and long payment cycles.
The solution differs from the traditional invoice discounting offered by banks which focuses on single invoices for large institutions coupled with collateral demands.
Instead, it seeks to understand the business and its operating environment as well as data related to the potential for growth. They also offer free business development and strategy training for clients.
How to get financing from IMFact :
- Sell your invoices to IMFact
- IMFact deposits funds into your business account
- Your client pays the full invoice amount to IMFact within 90 — 120 days
- IMFact deposits the remainder of the invoice into your business account
As a business, there is no need to wait up to ninety days before debtors pay their invoices, there is actually a business solution that is there to lengthen the shelf life of businesses in the market post-pandemic! Turn your invoices into cash!
Get started on your path to business success and growth HERE