By Tom Jackson
Rwandan fintech startup Benefactors has taken on US$150,000 in pre-seed funding to help it scale its operations after reaching break-even point in June.
Launched in August of last year, and named winner of the Rwandan leg of the Seedstars World competition in July, Benefactors provides factoring services, offering businesses cash advances against confirmed invoices from reputable buyers.
The service supports small and medium sized companies in stabilising their cash flows, honouring their commitments and taking advantage of growth opportunities.
“We also know that cash flow stability is not just a financial problem, but one that can be affected by many other factors, so we work with a network of professional service providers such as accountants, recruitment firms and lawyers to help our clients achieve stability in whatever way they need it,” Olivia Zank, chief executive officer (CEO) and founder of Benefactors, told Disrupt Africa.
“Cash flow issues are everywhere the biggest reason why companies fail – it doesn’t matter which country. In Rwanda, however, we noticed that there are very few formal solutions to these kinds of problems, in that commercial banks do not typically have the technology to provide quick and flexible short-term liquidity products.”
In fact, banks can take Click here to read entire article