RBZ promises SMEs financial injection

THE Reserve Bank of Zimbabwe (RBZ) will keep driving the “factoring initiative” to unlock liquidity for small-to-medium enterprises (SMEs), as collateral remains a hurdle for them to secure loans.

Factoring is a type of finance in which a business sells its accounts receivable (invoices) to a third party to meet its short-term liquidity needs.

The third party would then provide liquidity to the firm as the company would pay back using the money they would later receive through the account receivables.

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