ABOUT US
First Factoring Company International (Pvt) Ltd (First Factoring) is the first company to introduce single invoice discounting in Zimbabwe in 1998. It established the same services, as the only player in Malawi in 2001 and in Zambia in 2002. During the Zimdollar crunch, it scaled down its operations and re-launched in 2011. First Factoring IS now a structured commodity financing, factoring centre and financing boutique duly incorporated in Zimbabwe in terms of the Companies Act (Chapter 24:03)
Having realized the adverse effect of Zimbabwe's economic decline on the productive sector and the country's increasing reliance on international trade, the Promoters of First Factoring re-launched the Company to provide an efficient factoring, commodity financing and financing service boutique with emphasis on bulk imports and exports to enable its customers to benefit from economies of scale, as well as provide factoring services for local producers, importers as well as exporters.
BASIS FOR BUSINESS
1. Local supermarkets and chain stores that are dominated by imported products from basics
The country has experienced an accelerated economic decline over the last ten years. This has resulted in low capacity utilization in industry that also translated into lack of incentive to retool. As a result, the economy is increasingly using obsolete equipment which has led to highly priced and poor quality products. This is reflected throughout products such as green washing bars and cooking oils to higher order products such as furniture and electrical gadgets.
2. THE BUSINESS institutions with confirming facilities for Zimbabwean Banks.
The manufacturing sector has a huge challenge particularly on imported raw material and spare parts that have to be paid for months in advance due to the country's limitation on lines of credit. Even if they have the capacity to establish LCs, there aren't many.
Exports have also been largely hampered by the lack of working capital as a result of a massive liquidity and credit squeeze the banking sector finds its self facing. All major exporting sectors including Agriculture and Mining have come short on production as a result of the lack of finance.
It is against this background that First Factoring was re-launched to offer unique customized products to facilitate trade into and out of Zimbabwe and to enter into a trading relationship with local and international banks as well as international factoring agents and brokers, to enable the extension of trade credit to First Factoring's approved customers wishing to either import or export.
Since re-launch, First Factoring has been tailor making secure trade finance structures and utilizing Letters of Credit for world-class financial institutions and Discounting and Guarantee Facilities and other trade finance instruments to facilitate both imports and exports while mitigating the perceived Zimbabwe risk factor.
It also offers flexible cash flow support schemes, through factoring, that are custom-made but centred around asset-based and self-secured structures. A great number of traders and manufacturers are finding this service to be of great benefit, mainly due to its accessibility and simplicity in implementing. We are paying a majority of the factored invoices within 48 hours of presentation of documents.
Even the major buyers that do not require cash flow support are getting great benefits through our factoring services. Their suppliers are now able to offer them better payment terms, especially longer credit terms, without them (suppliers) facing cash flow challenges. There is now predictable supply of stock from the suppliers due to the factoring services.
ABOUT THE PROMOTERS OF FIRST FACTORING
The promoters of First Factoring have wide experience in putting in place commodity, financing, procurement and logistics structures. Below is a brief profile of the promoters:
Collen Magurah
Collen is the CEO of First Factoring and he holds a bachelors degree in Economics and a certified diploma in ACCA. He worked for CBZ Bank as an Economist for two years before moving to NMB Bank Limited. He worked there for two years before founding First Factoring Company of Zimbabwe in 1998. He also founded First Factoring Company Malawi in 2001. Through the factoring business, Collen helped fund numerous trading transactions through order financing and discounting structures, most of which were for the benefit of the country's leading retailers.
Rejoice Matema
Rejoice holds a bachelors degree in Economics. She worked for the ministry of Education before joining the University of Zimbabwe's Development Technology Centre as Projects Development Officer. She worked there for three years before she was involved in the setting up of First Factoring Company of Zimbabwe. She then joined Nercandetti as an Executive Director in 2003.
Handrina Rusike
Handrina holds a Masters Degree in Economics from Patrice Lumumba University Russia. She joined the then Customs and Excise now Zimra in 1997. She is a non-Executive Director.