Firm procuring services from suppliers will be required to enter into an agreement with CRDB Bank
Dar es Salaam. CRDB Bank has introduced a new financing arrangement that will allow suppliers to receive payments ahead of schedule, in a move aimed at stimulating business growth and easing cash-flow constraints among service providers nationwide.
Speaking in Dar es Salaam yesterday the bank’s Chief Commercial Officer, Boma Raballa, said the initiative is designed to help suppliers access their money more quickly after delivering goods or services to institutions and companies.
“While procurement offers vast business opportunities, many suppliers fail to take advantage of them because they often wait too long for payments.
This facility is meant to ensure that suppliers receive their funds promptly, enabling them to undertake additional work with the cash they need on hand,” he said.
According to Mr Raballa, the bank will work closely with institutions and companies that rely on suppliers, thereby forming the tripartite structure necessary for the smooth implementation of the new facility.
Under the arrangement, any institution or company procuring services from suppliers will be required to enter into an agreement with CRDB Bank, authorising the bank to make payments to their approved suppliers.
This means the first agreement will be between the client institution and CRDB Bank to verify that services have been delivered and to confirm their value before the bank releases payment to the supplier.
“We welcome all institutions and companies with suppliers to adopt this service to fast-track payment processes. CRDB Bank is ready to pay every verified invoice,” Mr Raballa said.
To access the early-payment service, suppliers will need to submit duly verified invoices confirming goods delivered or services rendered.
The bank will then make payment ahead of the contractual schedule. When the agreed payment date arrives, the client will reimburse CRDB Bank the respective amount.
Suppliers will not be required to provide collateral to access the facility, which frees them from waiting between 30 and 90 days as is common in procurement contracts.
This, Mr Raballa said, will enable businesses to grow with improved cash flow to support day-to-day operations.
Institutions and companies using supplier services also stand to benefit from the arrangement, as they will have more time to organise the funds required for payment without disrupting supplier operations.
The facility attracts a competitive interest rate of 1.5 percent per month on the funds advanced.
“This arrangement will strengthen relationships between CRDB Bank, suppliers, and the institutions and companies that depend on them.
Such cooperation is essential to enhancing business resilience and supporting national economic growth. We are proud to launch this initiative for the country’s business community,” he said.
