The Commercial International Bank – Egypt (CIB) has announced the launch of a new electronic platform to finance the needs of suppliers, and procurement and contracting activities.
The platform provides financing opportunities for small- and medium-sized enterprises (SMEs) as a first stage through a one-stop advanced technology platform.
It supports solutions and programmes to increase the working capital of the supply chain network whilst lower financing costs, speeding up operations, and providing lower risk.
Mohamed Farag, Executive Vice President of CIB’s Operations Sector, said the product aims to finance supplier chains, through a single electronic platform. It simplifies the relationship between suppliers and buyers, improving working capital and enhancing the level of cash liquidity.
He added that the programme is specifically designed for CIB’s Egypt supply company customers, with the aim of helping them improve their business cycle. It finances the value in short periods according to timetables set by major local and foreign companies operating in Egypt.
Farag explained that CIB evaluates clients based on their financial positions, their evaluation of the risk rate, and the chain of relations between suppliers and companies. He also said that it may include small- or medium-sized enterprises (SMEs) and other large ones.
Farag added that the customer base has risen to reach over 12,000 clients that use electronic channels at CIB – Egypt.
Rashwan Hammady, Head of Customers and Retail Banking Products, said that CIB – Egypt is keen on building strategic and sustainable relationships with many companies to help simplify procedures for payments to suppliers.
He added that the bank is keen on facilitating the collection process through more appropriate digital solutions, and to ensure procurement chain stability by making credit facilities available to suppliers.
Hammady highlighted the platform’s positive impact, as it contributes to improving working capital through a faster, non-cash collection method. There are also more favourable credit terms for suppliers, and better transparency of financial transactions related to the sales process.