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Amitruck Partners With IMFact On Logistics Financing

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Amitruck, the digital logistics company, has 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 says IMFact offers clients the ability to grow their business by turning their debtor portfolio immediately into cash. Also known as factoring, this method allows IMFact 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,” says Mr Lwatati.

Factoring differs from the traditional invoice discounting offered by banks which focuses on single invoices for large institutions coupled with collateral demands.  Instead, it seeks to understand the business and its operating environment as well as data related to potential for growth.

“We have affiliated with Amitruck because of their innovative approach to solving the inefficiencies in the logistics sector,” says Mr Lwatati. “Their solutions have disrupted the local transport market and given them an edge over other trucking and logistics companies.”

Trucking logistics companies usually face challenges in allocating funds to fuel trucks, pay drivers and maintain quality professional standards. 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.

Amitruck is going across borders, and this has been made possible through partnerships like this where Growth Africa through its accelerator program offers mentorship and advisory support then brings on board IMFact to plug in the much-needed financial resources.

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BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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