FACTS
Supply Chain Finance
Assignment
Context
A deliverable of the Finance 4 Agriculture (F4A) programme was conducting a feasibility study into setting up a new Finance Company (FinCo) dedicated to the financing of SMEs active in Food and Agriculture chains.
Challenge
The feasibility study demonstrated that “Late Payment” is an issue that is severely prohibiting growth of SMEs and can indeed cripple them. Large off-takers invariably buy from smaller suppliers and use their market power to demand payment terms of 90 days (and sometimes more). Yet these suppliers – often Agro-processors – need to pay for their own inputs on a cash-basis. This mismatch in cash flow timing causes working capital to come to a standstill.
Solution
Based on the market study, FACTS (Financial Access Commercial Trade Services) was started as a Supply Chain Finance company with operations in Kenya and Uganda. FACTS targets Agro-SMEs and assists them with a range of factoring, reverse factoring, invoice discounting and input finance solutions.
Year
Ongoing
Place
Kenya
Client
FACTS
Beneficiary
FACTS
Partners
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