One of South Africa’s biggest supermarket chains, The Shoprite Group has announced that it will be offering access to funding to its suppliers at afforable rates.
The company is launching its new supply chain finance product, CredX, which Shoprite says could be cheaper than bank financing.
The group said that it would be available to all of Shoprite’s suppliers and assist especially SMMEs, for whom cash flow constraints and access to affordable funding were significant business growth obstacles in South Africa.
The benefits include:
- An affordable financing product from a trusted business with an all-inclusive interest rate and no additional fees;
- 100% of invoice value available for financing;
- No further on-boarding requirements as the Group has already vetted its suppliers;
- Approval and payment of financing within 24 – 48 hours.
"There is a definite need in the market, especially amongst small- and medium-sized suppliers who struggle to access finance through traditional routes,” said Jean Olivier, General Manager: Financial Services.
“While there are alternative supplier finance products available, we can provide a better service due to the Shoprite Group’s extensive ecosystem, and we expect this initiative to build even stronger supplier relationships.”
The Group said it is launching CredX in partnership with UK-based Demica, a global market leader in supply chain financing solutions.
“This is one of several initiatives by the Group aimed at supporting small suppliers, and follows the recent launch of Shoprite Next Capital, a business division dedicated to capacitate and grow commercially-viable SMME’s to further the retailer’s continued efforts to give small suppliers access to market,” Shoprite said in a statement.
BUSINESS REPORT