Supply Chain Financing and Collections
Kapilink is a user-friendly online platform that provides ecosystem for buyers, sellers and financiers in one capital financing marketplace, with main emphasis on financing seller’s accounts receivables or buyer’s accounts payables.
The platform supports various working capital solutions such as invoice discounting, factoring and dynamic discounting. Kapilink has very sector-focussed models to address the financing needs of their supply chain participants.
Micro, Small and Medium Enterprises (MSMEs) are the cornerstone of many African economies. One of the major problems hindering MSME suppliers to grow, is the locked-up cash (receivables) from their buyers (usually large corporates).
The current problem with traditional lending methods
1. Traditional lending methods rely heavily on collateral and data on MSMEs which is usually inadequate.
2. Complex, lengthy processes.
3. Expensive MSME financing.
Kapilink facilitates Supply Chain Financing & Collections in a Platform-as-a-Service (PaaS) Model.
Benefits to Lender
- Minimal risk as corporates is unlikely to default on invoice; higher interest income, fee income (from collections & merchant services) and CASA balances.
- Portfolio diversification
- Positive PR as Supply Chain Financing promotes inclusive economic growth
Benefits to Anchor
- Has negotiating power to extend payment terms and hence enhanced liquidity.
- Opportunities to benefit from any dynamic trade discounts that maybe offered by their suppliers.
- Lower risk of upstream supply chain disruptions
- Reduced administrative burden
- Improved supplier relations
Benefits to MSME
- Optimization of cash flow.
- Working capital financing
- Operation Efficiency
- Allows expansion for economies of scale.