Online Reporter
Tawanda Musarurwa
THE Financial Securities Exchange (Finsec) has launched an Invoice Discounting facility on its Private Markets platform, a development expected to ease cash flow challenges for local businesses struggling with long payment cycles.
The facility allows suppliers of goods and services to convert their outstanding invoices into immediate cash, providing working capital to sustain operations and drive growth.
Through Finsec’s digital platform, businesses can upload know-your-customer (KYC) documents and invoices, and receive upfront, discounted payments.
The buyers then settle the full invoice amount directly with Finsec when it matures. Escrow Group CEO Mr Collen Tapfumaneyi, whose company operates Finsec, said the initiative will help address one of the most pressing problems faced by businesses.
“Many enterprises in Zimbabwe, particularly small and medium-sized businesses, are burdened by payment cycles that can stretch from 30 to 90 days,” Mr Tapfumaneyi said.
“Our invoice discounting service unlocks the value tied up in receivables, giving companies the liquidity they need to pay salaries, purchase inputs, and take on new orders without waiting for clients to settle invoices.”
According to Finsec, the facility is available for invoices with a tenure of 60 days.
The innovation is expected to be a lifeline for Zimbabwe’s growing SME sector, which is often excluded from traditional bank lending because of collateral requirements.
By leveraging confirmed invoices instead of physical assets, firms can access financing more quickly and with less red tape.
Mr Tapfumaneyi said the move reflects Finsec’s broader commitment to developing alternative financing mechanisms that complement the formal banking sector.
“As a registered securities exchange, we are providing structure, transparency and confidence to this important form of financing,” he said.
“Through our private markets platform, businesses are connected with credible financiers and investors who are ready to support their growth.”
While Finsec has not disclosed names of companies already using the platform, sectors expected to benefit include suppliers to large corporates and FMCG firms, Government contractors, professional service providers, and manufacturing companies.
The launch of invoice discounting marks another step in Finsec’s push to build a more dynamic financial ecosystem, one designed to help enterprises weather cash flow gaps and position themselves for expansion in a challenging economic climate.
