Zimnat Microfinance pioneers invoice discounting for SMEs
ZIMNAT Microfinance has pioneered a new financial product, the Invoice Discounting Facility, designed to ease cash flow constraints for small and medium-sized enterprises (SMEs).
The announcement was made during the ongoing 56th edition of the Zimbabwe International Trade Fair (ZITF), being held under the theme “Industrialisation: Crafting an Integrated Economic Landscape.”
The facility allows SMEs to access up to 80 percent of the value of approved unpaid invoices in advance, effectively providing short-term working capital. This is particularly critical for businesses that experience delays between delivering goods or services and receiving payments.
Invoice discounting is a financing method where businesses use outstanding invoices as collateral to receive immediate cash from a lender. The lender advances a percentage of the invoice value and recovers the funds once the customer settles the invoice.
This arrangement helps businesses maintain liquidity without waiting out long payment cycles.
Lloyd Borerwe, managing director of Zimnat Microfinance, said the facility was developed in response to long-standing complaints from SMEs about delayed payments.
“Slow invoice settlements have restricted growth in many sectors. This facility is meant to free up capital quickly so businesses can meet day-to-day operational demands or take on new contracts,” Mr Borerwe said.
The facility is open to SMEs across various sectors, including contractors, agro-dealers, service providers, and informal traders. It is designed to be accessible with minimal collateral requirements.
Tatenda Marongwe, Zimnat group marketing executive, noted that the initiative emerged from direct feedback.
“Our clients consistently pointed to payment delays as a major operational bottleneck. This product addresses that issue head-on.”
Economist Dr Tinashe Moyo said the introduction of invoice discounting could support economic stability.
“SMEs are vital to employment and local supply chains. Improving their access to liquidity helps ensure continuity in business operations, particularly for those handling large or seasonal contracts.”
Ms Chihota, who operates in the catering sector, said, “There are periods when we are waiting for payments from big clients while needing to prepare for upcoming events. This facility will definitely fill that financial gap.”
The product is being rolled out nationwide, with SMEs encouraged to take the opportunity to keep their businesses oiled and also give them the opportunity to offer longer credit terms.
Zimnat Microfinance is part of Masawara Holdings and is affiliated with the Sanlam Group, one of the continent’s leading financial services firms. The new facility is part of Zimnat’s broader strategy to expand access to finance for under-served business segments in Zimbabwe.-chroncile
