eBusiness Weekly
Kumbirai Tarusarira
The Zimbabwe Stock Exchange Limited (ZSE) is co-operating with Harare Receivables Exchange Limited (HRE) to enhance growth in the development of a receivables financing platform.
According to Investopedia, accounts receivable financing is a type of financing arrangement in which a company receives financing capital related to a portion of its accounts receivable.
Harare Receivables Exchange is a trade finance company specialising in providing an advance or a line of credit secured against outstanding invoices, the company helps to solve cash flow issues, created by payments terms on invoices, so that after a business has provided a good or service they have to wait to be paid.
A memorandum of understanding between the two parties has already been signed for the implementation of strategies that will help in developing receivables financing platform.
Said ZSE chief executive Officer Justin Bgoni:
“The signing of the MOU forms a basis for ZSE and HRE to establish a framework in the development of a receivables financing platform.”
“We are delighted to be partnering with HRE, and we envision that over time, the receivables financing platform will grow to offer additional products that will provide the wider market working capital and other forms of financing.”
“Our mandate as the ZSE is to facilitate Economic Development of Zimbabwe and Africa, and we are excited that such partnerships with HRE, are positive strides in fulfilling our mandate.”
This collaboration will entail both parties having joint responsibilities in the establishment of a trading platform for receivables.
