Businesses to benefit from invoice-based loan

Businesses stand to benefit from invoice proceeds-based finance loan by ensuring that their working capital and cash flows are eased.

Speaking to customers at Blantyre Sports Club last week, National Bank of Malawi (NBM) general manager Macfussy Kawawa said the product is intended to provide working capital to businesses.

“NBM has introduced a number of innovative products including invoice proceeds based finance loan which is intended to support businesses as they wait for their payments from customers,” he said.

Making a presentation during the interaction, NBM accounts relationship manager Wezi Mwanzani said the facility is available to businesses with accounts with the bank.

“The maximum amount to be accessed under the facility is 70 percent of the invoice amount. Once payment of the invoice is ready, the invoiced organisation pays through customer’s NBM account,” she said.

Mwanzani said the benefits of the facility to the invoicing entity include access financing from NBM regardless of balance sheet position and allows businesses to speed up buy and sale processes.

She also said benefits to the invoiced entity include eased pressure on fast track payment for supplies and ensures that operations are not disrupted as a result of lean cash flows.

Apart from the invoice-based loan facility, NBM also presented to its customers other products, including Fiesta Save Account, cards and e-banking services and other conventional business and personal credit facilities. n