Seithati Motsoeneng
BANKING giant, Standard Lesotho Bank (SLB), has launched a new trade financing product designed to offer easy financial support to small and medium scale enterprises (SMEs).
The new trade financing product comprises three main components: Invoice Discount Finance, Local Purchase Order Finance, and Contract Finance. With this product, entrepreneurs can gain access to financial support by simply providing an invoice, local purchase order, or contract.
This initiative aims to simplify business operations for Basotho entrepreneurs and add value to their businesses. Unlike in the past, where entrepreneurs were required to produce collateral before receiving funds from the bank, the new financing product only requires proof of a financing order and proof of accounting solvency.
The program was initially tested with TP Technologies, which had a M1 million order needing financial assistance from the bank.
Lerato Sekolopata from TP Technologies shared her positive experience with the new product, stating that, “acquiring finance from SLB was seamless, allowing us to supply our customers on time without financial hurdles”.
“Most companies struggle to meet the banks’ loan demands, but with this new SLB product, many companies will operate smoothly with easily accessible funds from the bank”.
She added that the requirements for their loan were easily met, making the process straightforward and efficient.
At the launch event, SLB’s Head of Business and Commercial Banking, Keketso Makara, said the bank was commited to finding innovative solutions to the problems its clients faced.
“We take pride in breaking into uncharted territories to find new solutions. We spend sleepless nights thinking about how best SLB can add value to our business customers and grow the economy of our country,” said Mr Makara.
He said the SLB’s ultimate goal was to help grow Basotho businesses and improve the country’s economy. He added the SLB was the only bank bold enough to introduce such innovative solutions, with financing provided within 24 hours of a successful application process.
“We boast the biggest lending book in the country, exceeding M9.6 billion as of December 2023, demonstrating our commitment to lending to Basotho.”
Through this new trade financing product, Basotho entrepreneurs will be able to secure loans of up to a million Maloti, with negotiable repayment timeframes depending on their financing needs, he said.
