Kapilink Overview

Kapilink is a user-friendly online platform that builds an ecosystem of financiers, large corporates and MSMEs to facilitate Supply Chain Financing and Collections in one place. The platform helps to improve working capital management and liquidity generation.

Kapilink facilitates Supply Chain Financing & Collections in a Platform-as-a-Service (PaaS) Model.

Supply chain finance aims to lower costs for both buyer and seller and typically requires a cloud-based platform to which the buyers and suppliers have access. This is where Kapilink comes in because it supports various working capital solutions including: factoring & reverse factoring, invoice discounting, and dynamic discounting.

Micro, Small and Medium Enterprises (MSMEs) are the cornerstone of many African economies, but one of the major problems hindering their growth 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.

Through Kapilink, buyers can increase their payment terms, MSMEs can get paid earlier, and Financial Institutions get opportunity to deploy funds and make earnings.

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Kapilink Platform Benefits

Benefits to Lender

  • Interest Rates & ability to charge differential interest rates for various types of players in the chain
  • Minimal risk as corporates is unlikely to default on invoice; higher interest income, fee income (from collections & merchant services) and increment in CASA (Current Account & Savings Account) balances.
  • Lower Gross and Net Non-Performing Assets (NPA) & higher Risk Adjusted Return on Capital (RAROC)
  • Portfolio diversification
  • Cross selling & Up-selling to the participants
  • Positive PR as Supply Chain Financing promotes inclusive economic growth.

Benefits to Anchor

  • Achieve working capital optimization to extend payment terms
  • Enhanced liquidity through freed up cash
  • Opportunities to benefit from any trade discounts that maybe offered by their Suppliers
  • Lower risk of supply chain disruptions by supporting strategic suppliers
  • Improved supplier relations
  • Reduced administrative burden
  • Off balance sheet

Benefits to MSME

  • Operation Efficiency
  • Cash flow flexibility, predictability and certainty
  • Reduce DSO (days sales outstanding)
  • Optimization of working capital.
  • Access to cheaper finance
  • Allows expansion for economies of scale.
  • Off balance sheet

Platform Features

  1. Fully configurable to enable faster innovation and quick product/service roll-out.
  2. Quick and easy on-boarding of customers.
  3. Easily Integrated into core banking systems.
  4. Easily Integrated into all types of existing ERP solutions.
  5. Operates in both Marketplace Mode and Bilateral Mode.

 

Kapilink is a user-friendly digital platform that facilitates stable and flexible financing.

Kapilink Ecosystem Players

Financial Institutions

FMCG

Telecom

Manufacturing

Healthcare

Suppliers (SMEs)

Kapilink facilitates a win-win situation for Financial Institutions, Anchors and MSMEs!

Contact us to find out how Kapilink can benefit your business.