CRDB launches earlypayment facility for suppliers

DAR ES SALAAM: CRDB Bank has introduced a specialised financing facility for suppliers serving corporate and institutional clients, as part of broader efforts to boost business growth across the country.

CRDB Bank’s Chief Commercial Officer, Boma Raballa, said at on Wednesday launch that the facility is designed to provide suppliers with quick access to funds, enabling them to maintain liquidity and take on additional assignments.

“Tendering is a businessfriendly system, but many suppliers fail to seize more opportunities because they wait too long for payments. “This facility is designed to give suppliers quick access to the money owed to them by clients, enabling them to continue with other work since they will have the necessary liquidity,” Mr Raballa said.

To reach more beneficiaries, he said that the bank will collaborate with institutions and companies that rely on suppliers across the country to complete the three-party arrangement required for this financing model.

Under this new arrangement, the institution or company receiving services from the supplier must enter into an agreement with CRDB Bank, authorising the bank to pay suppliers who have already delivered services.

This means that the initial agreement must be made between the servicerecipient and CRDB Bank to verify the services provided and their value, after which the supplier can receive the payment due to them.

“Our bank is ready to pay any invoice that has been verified,” Mr Raballa said.

For a supplier to benefit, they must submit an invoice verified by the institution or company confirming the services rendered or goods supplied, so the bank can pay them ahead of the agreed payment date.

When the due date arrives, the client will reimburse CRDB Bank the respective amount. Suppliers will not be required to provide collateral to access this loan, which relieves them from waiting 30 to 90 days stipulated in tender contracts and ensures they have working capital to grow their businesses.

For institutions and companies engaging suppliers, the facility gives them sufficient time to mobilise funds to settle their obligations without affecting suppliers, while also strengthening their relationship with them.

The financing will carry a competitive interest rate of 1.5 per cent per month on the amount paid to the suppliers. “This collaboration is vital for business resilience and for supporting the growth of our national economy. We are proud to launch this journey for the business community in the country,” he said.