AN INITIATIVE OF WHITEHALL ADVISORS LIMITED
- In 2019, we introduced our flagship supply chain financing solution. The model works with SMEs in Africa – starting with Ghana – in possession of legally binding contracts with established brands and/or multinationals.
- Currently, our clients have running Purchase Order (PO)/contracts/supplier agreements with the reputable firms including Anglogold, Coca-Cola, Diageo/Guinness, Shoprite, Melcom, Koala, Max Mart, Bargains, Fairway,
Bank of Ghana, GCB, NIB, ADB, Absa and others.
- The terms of these contracts require clients to pre-finance and offer goods and services and be paid between 30 to 90 days after delivery. While they wait for payment on the first supply, they are often called upon, sometimes within days, to execute a second and then a third supply. With limited working capital, this is not possible for most SMEs in Ghana.
- As you may know, access to finance for SMEs is a big issue in Ghana/Africa. Their inability to get enough funding from financial institutions and on time has pushed a good number of these businesses to rely on loan sharks that are charging up to 15% a month to offer them the needed credit line which is not sustainable.
- In Ghana where our pilot is currently running, multinationals are required to comply with local content laws i.e. issue a percentage of contracts to local businesses to supply goods or offer varied services. As a result, we are seeing an increasing growth in clients in possession of these contracts/POs
but limited capacity or capabilities to deliver. So demand for our services have been overwhelming. - Upon execution of the first PO, clients come to us with an invoice against which we release funds to enable them to execute the second and third supply. Once they get paid, our funding partners get their funds back plus
an agreed margin.
- As a pilot, it’s been running for five years (in Ghana) with;
- 10 team members
- 100+ active medium size clients
- $1M+ annual disbursements
- 98% repayments
- Double digit YoY growth
- Double digit ROI to investors
- Our plans for the next 5 years is to grow;
- Fund size to $50M
- Client base to 100,000
- Team size to 100
- Deploy state of the art technology
We are on the lookout for meaningful partnerships/investment to scale up
across Ghana and Africa.
An amount of GHS 50M is being raised for 2024 as follows.
- Q1 -GHS 10M
- Q2 –GHS 10M
- Q3 –GHS 15M
- Q4 –GHS 15M
- Return on investment is 36% per annum payable quarterly, semi-annually or yearly.
- The funds are required to finance pending and incoming job orders across our FMCG, Food & Beverages, Services, Pharmaceutical and Real Estate clusters.
- Anchor off takers are Melcom, Shoprite, Marina, GCB, NIB, Anglogold, Guiness, Coca Cola, and Ihomes.