At Benefactors, we provide factoring services that consist of advancing funds to businesses (mostly SMEs) based on their Accounts Receivables. In non-technical terms, we give money to SMEs that need immediate cash, against invoices that they issued to their clients who generally apply 45 to 90 days payment terms.
Factoring products have proven to be great contributors to improving access to finance for SMEs in general and particularly in Africa as expanded on by our CEO on this Video. However, factoring services have only seen limited adoption in Africa at only around a volume of $30 Billion / Year (90% of it in South Africa alone) when it could be as high as ten times! We have already been working on mitigating that gap in Rwanda with more than 2000 Invoices financed over the past 2 Years.
We believe that building Internet Era technologies to power SME financing through alternatives such as factoring will even further broaden their reach. Here is how:
We have confidence that by doing the above right, we will prove that technology can make factoring business scalable. As a result, it will convince many other financial institutions to consider factoring as part of their product portfolio. We hope that we will have built a platform that will allow them to do so, quickly!
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