About Us
As specialists in supply chain finance, trade solution (reverse) factoring and brokerage activities
to SME’s in emerging frontier markets, we’re committed to building strong relationships with our
customers. We work alongside you to understand and support your business growth
Ubunteq Financial Services Limited (“Ubunteq”) was incorporated on 21st May 2020 (Companies Registration No.
120200003845) to offer supply chain finance, trade solution (reverse) factoring and brokerage activities to small and
medium-sized enterprises (“SMEs’’) in Zambia. Presently, Ubunteq has not commenced any business activities, as it is
in development phase of its platforms. Ubunteq will thus be providing shorth term cashflow solutions to Zambian
SME’s through credit management and advancing of receivables.
Supply Chain Finance/Factoring Holistic Approach of Entire Accounts Receivable Portfolio
Supply chain finance (“SCF”), at times referred to as receivables finance and factoring, is a way of financing accounts receivables and is essentially a disclosed working capital facility based on the assignment of short-term account receivables which is stated on the client’s invoice. SCF can drive significant value for SMEs, as it can be structured and dimplemented in a short period of time, meeting client objectives, such as releasing cash trapped within its balance sheet, or getting access to alternative sources of funding at competitive pricing.
Factoring is widely accepted as an alternative financing source and used in almost every industry that sells businessto-business. One of the biggest advantages of factoring is the improvement of financial competitiveness by the increase of liquidity and enhancement of cash-flow patterns of businesses.
Typical Ubunteq SCF/Factoring Illustration
Typically, an SME would assign all its accounts receivables (all or selected subject to Ubunteq eligibility criteria) to Ubunteq. After due diligence and client on boarding procedures, Ubunteq would prepay the SME about 80% of its accounts receivable, with the invoices duly assigned to Ubunteq and the SME debtor notified. Ubunteq would then manage the credit management process, being responsible for collecting the cash from the SME debtors and pay the remaining 20 % minus fees and interest upon payment by the debtor.
- Factoring Agreement between SME $ Ubunteq executed and its accounts receivable assigned to ubunteq
- Notice of accounts recievable assignment to ubunteq sent to SME Debtor
- Ubunteq pays the SME 80% of the accounts recievable (eligible invoices) purchased from the SME ubunteq charges factoring commission of 1.5% of accounts recievable.
- SME invoices sales/services to its customers(“SME Debtor”)
- Ubunteq performs credit management, monitors and collects the outstanding amounts from the SME Debtors
- Ubuteq transfers the remaining 20%, after deduction of its factoring commissions and interest charges to the SME
