This archive report was first published on 5 November 2021.
On November 5, 2021, Amitruck, a digital logistics company, partnered with IMFact, a smart finance alternative to traditional bank lending for Kenyan SMEs in supply chain businesses.
The partnership will enable Amitruck to increase its financial stability and optimize its working capital, thus eliminating constraints related to overhead costs and long payment cycles.
IMFact Commercial Director Derrick Lwatati explained that factoring allows clients to use the cash injected into their businesses to purchase more goods or optimize payments to their suppliers.
"As IMFact clients access cash immediately, they are able to extend favourable payment terms to their clients or even offer upfront credit as a strategy to secure new business which ensures they generate more sales," said Mr Lwatati.
Factoring differs from traditional invoice discounting offered by banks, which focuses on single invoices for large institutions coupled with collateral demands.
IMFact's financing bridges the gap to enable transporters to run their businesses efficiently and affordably.
Amitruck CEO & Founder, Mark Mwangi, said the company has been able to realize financing with Amitruck at attractive commercial terms.
"We like the flexibility it offers. This means that we can use exactly the amount of financing we need without any additional costs as bank financing would have," Mr Mwangi said.
