Retailer Shoprite broadens SMME offering with new CredX finance
RETAILER Shoprite yesterday announced that it would be offering its suppliers access to funding at affordable rates.
The company is launching its new supply chain finance product, CredX, which Shoprite says could be cheaper than bank financing.
The group said that it would be available to all of Shoprite’s suppliers and assist SMMEs, for whom cash flow constraints and access to affordable funding were significant business growth obstacles in South Africa.
Jean Olivier, general manager: financial services, said: “There is a definite need in the market, especially among small and medium-sized suppliers, who struggle to access finance through traditional routes.“
Shoprite is launching CredX in partnership with UK-based Demica, a global market leader in supply chain financing.
“This is one of several initiatives by the group aimed at supporting small suppliers, and follows the recent launch of Shoprite Next Capital, a business division dedicated to capacitate and grow commercially-viable SMME’s to further the retailer’s continued efforts to give small suppliers access to market,” Shoprite said in a statement.
The announcement by Shoprite follows the retailer earlier this year
launching Shoprite Next Capital, a business division dedicated to capacitating and growing commercially-viable SMMEs to further the group’s continued efforts to give small suppliers access to its consumer market.
Small local enterprises with an annual turnover of R5m or less, and a one-of-a-kind product to sell, were invited to join the largest supplier network in Africa.