Standard Lesotho Bank (SLB) has introduced a brand new offering for the small, micro and medium enterprises as well as commercial businesses operating in Lesotho.
This new offering called Trade Finance is a relatively new portfolio aimed at boosting economic opportunities.
The bank will serve all businesses that play an important role in the economy since they constitute the core of the supply chain of products and services in Lesotho.
SLB also plays an important role as employers for Basotho who support families across the country.
Speaking at the launch, the chief executive of Standard Lesotho Bank, Anton Nicolaisen, expressed confidence in the bank’s pioneering role in introducing this innovative solution.
Nicolaisen said SLB has a clear vision in what they want to achieve; they see themselves as an important role player in driving growth.
“I am happy with how our commercial banking team has put this product together. We want to be a trusted partner in this economy and make sure that we help with the prosperity of Basotho.
“We want innovative products in the market to solve for the challenges we have,” he noted.
The bank’s head of business and commercial banking, Keketso Makara, emphasized the importance of trade in modern times.
He said trade is the fundamental economic concept involving the purchase and sale of goods and service.
Makara also indicated that trade has many components that are not the subject of today’s conversation and can take place at local level as well as at a global level like international trade.
Trade is therefore the core of business, because in modern times, money is used as a medium of exchange to trade.
“This is where the bank ensures that businesses have adequate liquidity at all times for uninterrupted trade, especially on a short-term basis.
“Businesses, no matter how big or small, need liquidity or capital at all times to realise trade and make profit in the process, so that they are able to grow,” Makara pointed out.
He added that with access to finance being a barrier to economic growth to many businesses, access to finance to support trade in Lesotho is now a thing of the past.
SLB has come up with three key products under the new offering, namely Invoice Discounting Finance, Local Purchase Order Finance and Contract Finance, that will provide solutions to bridge the gap between access to finance and the smooth running of Basotho businesses that can lead to growth.
The main requirement is proof of trade through a verified purchase order or contract from a customer that the business is serving. There is also no need for collateral security, and the bank does not require financial statements. In terms of turnaround, the bank is able to process these loans within a week of application.
