A business operates on many foundations, trust, luck, liquidity, loyalty and so many other values that ensure they stay ahead of the game in the industry.
Staying afloat is the end goal for all businesses, be they Small and Medium Enterprises, big corporations or organisations.
It goes without a doubt that at times, operations are affected by various factors that result in a serious cash crunch. In Kenya, big corporations and banks have gone through such challenges that have caused them to go under or under receivership (For banks).
The causes of these falls can be pinned on a lack of proper finance strategies, debt, pandemics and endemics and so much more.
In the recent two years, the world faced its biggest challenge, the COVID-19 pandemic, which not only caused the deaths of millions globally but adversely affected business operations in Kenya.
Businesses went down due to a serious cash crunch and debtors defaulting on payments on the biggest scale ever seen.
IMFact saw a gap in this space and began offering affordable and flexible working capital for such businesses.
How?
The company is offering financing on company invoices because in cases where a loan can be provided to the company, banks have to be fully secured by means of land, buildings, machines, other real estate properties, inventory, fixed and floating debentures and on top of that a personal guarantee from the owner of the SME business.
This ends up exposing SMEs to unregulated lenders who become unsustainable for business growth due to the extremely high-interest rates offered.
IMFact offers financing on the basis of the purchase of the portfolio of trade receivables and no other collateral or guarantees are required.
This means that rather than having to wait two, three months or sometimes longer before debtors pay on invoices, businesses now have the opportunity to immediately turn these invoices into cash.
Only the pool of invoices serves as collateral and that results in a flexible financing facility as a business can draw down only the amount of financing needed.
Affordable interest is charged on outstanding amounts. No other fees or costs are applicable.
Get started with your application HERE
