Stanbic Bank Botswana continues to financially assist SMMEs through the purchase order financing platform.
The bank's Head of Trade, Business Banking Golebanye Mosweu said the purchase order financing is a working capital solution used in the execution of a specific procurement of purchase and delivery of an order.
According to Mosweu, the solution involves a number of parties being the client, the bank, the off-taker and the order issuer or employer.
"The employer issues an order to the client, then the client approaches suppliers and approaches the bank with the pro forma invoice. The client will then state what the requirements are depending on specifications from employer as well as terms of the supplier. And the bank will guide accordingly in terms of how the transactions will be handled," she said. A letter of credit and guarantee can support this solution and a cession of the order has to be signed.
For SMMEs to access financing, they need to submit a valid order to the bank as well as bank statement if applicant is not a Stanbic Bank customer already. "Supplier quotes additional information. The main benefit of the solution is that it allows the client or applicant to take
"No tangible security is required; this is a big advantage for small and medium enterprises. If sourcing is from China, we are able to assist further with our Africa China Banking proposition. This is a proposition that facilitates Botswana/China trade,” Mosweu said.
Meanwhile Stanbic Bank, in line with Bank of Botswana (BoB) recommendations, is committed to encouraging the use of digital banking channels to reduce movement of customers and promote extreme social distancing during Botswana’s COVID-19 lockdown period.
The bank effected digital banking channel fee reductions of 25% on April 3, 2020 for the next three months. This further supports the three-months repayment holiday announced by Stanbic Bank with a view towards alleviating the strain on customers during this challenging time.
The reduction will see lowered rates for all digital banking channels including Online Banking, Cellphone Banking, Stanbic Bank App, Enterprise Online Banking and Business Online. We encourage customers to use our digital banking channels, whether this be from a personal or business perspective, replacing the need to visit a branch and drive reduction in overall cash handling.