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La Minute PUNCH – Alternative Financing: Factoring

Factoring [https://www.mcb.mu/en/sme/borrow/factoring] is a financial tool where you, the entrepreneur would sell your invoice to a factoring firm, like MCB [https://www.mcb.mu/] at a discounted rate, which helps to boost your cash flow. By using the factoring financing method, Yashveer from Freelance Distributors [http://www.iofml.com/] was able to buy his products in cash from suppliers and provide an advance to his customers, e.g. supermarkets and hypermarkets. Ultimately, Yashveer can focus on his core business while the factoring firm does the follow through.

La Minute PUNCH – Alternative Financing: Leasing

From keeping your cash on hand to adopting new technologies, equipment financing is part of a business plan that needs to be considered. You don’t always need to own a machine; you can also lease it. There are different types of leasing out there, and you need to choose which works best for your business goals. What’s interesting is that some kinds of leasing can take that equipment itself as a guarantee. In the case of Simp’Ex, Serge shares that their machines had to be renewed to ensure they were on par with the latest technology. Having reliable and modern equipment makes Serge’s business efficient and ensures production quality. Leasing [https://www.mcb.mu/en/sme/borrow/Leasing] was an excellent option for Simp’Ex.

La Minute PUNCH – Payment Acceptance

Going cashless is the way to go! It allows for faster, easier and more secure transactions. Customers can wave goodbye to long wait lines, and business operations are made more efficient. In fact, since COVID, there has been a 150% increase in contactless payments and a 55% rise in e-Commerce. Cashless solutions are here to stay. Sawkut from Ranzlakaz.mu [https://www.ranzlakaz.mu/] shares how he had to innovate during the pandemic. He realized that it was important for his business to adapt to consumer needs and to have an online presence. Now, his business works online 24/7 and his customers can get products delivered right to their doorstep.  There are several ways that you can cater for a cashless customer. If you have an online store like Sawkut, then a payment gateway with plug-ins and extensions can be added your website. If you have a physical store, you have the QR pay and a POS where one can tap and go. So go cashless, make the payment process faster for your customer and win the day! Learn more [https://www.mcb.mu/en/corporate/payment-and-cash/collect/] about the different cashless payment solutions.

La Minute PUNCH – Trade Finance Solutions

Most of our goods travel around the world to get to us. One of the ways to facilitate this international trade and commerce is trade financing – it takes away the payment and supply risk. HKF Electrical has been in the import/export business for 32 years. Elisa from HKF shares with us that she has always been able to pay the cost of supplies on time through import credit facilities. This helps establish trust and credibility with different suppliers. If like Elisa, you are also in the import business, MCB's trade finance facilities [https://www.mcb.mu/en/sme/borrow/Trade-Finance] are an easy solution to finance your imports. Get in touch with your Relationship Manager.

La Minute PUNCH – Access to Finance

Access to finance can allow you to pursue profitable growth or ensure that you don’t just make ends meet. While a small business loan [https://www.mcb.mu/en/sme/borrow/Loans] is more suitable for a long-term investment, the overdraft [https://www.mcb.mu/en/sme/borrow/Overdraft] is for a short-term business need. With a loan, you want to cover the up-front cost of expansion – for example: the cost of machinery or raw materials. With an overdraft, you get the flexibility to ease your cash flow. This gives a certain relief when unforeseen circumstances arise, as it was the case for Jenny Pidial from Fit U Garment Ltd. [https://fitugarment.com/] Pro-tip: Formulate a repayment strategy and ensure that you make your payments on time!