Societe Generale Burkina Faso (SGBF) spoke with its customers regarding the Factoring and Reverse Factoring system during a workshop held this Thursday, February 23, 2023 in Ouagadougou. The regulatory framework, the advantages and the illegibility conditions were explained to the participants.
The Transitional Legislative Assembly (ALT) adopted in its session of 13/06/2022/ the law N°006-2022/ALT relating to the activity of Factoring in Burkina Faso. In this context, Societe Generale Burkina Faso has undertaken to present the regulatory framework as well as the specific offers designed to meet the short-term financing needs of commercial companies.
By definition, Factoring is a contract by which a credit institution purchases receivables held by a supplier, from its customers, in return for services such as financing of receivables, administrative management of the customer item, protection once morest payment of debtors.
« It is a contract by which the customer assigns us his invoices. That means, we, the bank, buy the invoices and we give them the liquidity within 48 hours. “, explained Anne Ghislaine Koné/Zongo, Factoring Manager of Société Générale Burkina Faso.
Factoring, a solution that SGBF has been offering for 10 years, allows companies to have cash flow solutions according to Robert Aimé Diallo, Corporate Commercial Director of Societe Generale Burkina. “Between holding an invoice and having the actual payment, there is a time that passes. We allow companies to have cash as soon as they invoice their customers,” he said.
The meeting between the Bank and its customers also concerned Reserve Factoring. It is a short-term financing system through which the bank takes the place of the customer to make early or timely payment of its previously approved supplier invoices.
« Here, it is a question of financing the supplier of our customers. The advantage is that it allows our customers to convey a responsible corporate image and also support companies in paying their bills instead. Also for our customers, it allows in its supply chain, if there are critical customers and avoid supply disruptions “, defines Ghislaine Koné / Zongo.
The exchanges take place between the bank and its customers without hesitation. It is the mode of exchange between Société Générale which is to communicate on its products in order to enlighten the lantern of its customers according to Robert Aimé Diallo.
“We regularly discuss our products with our customers and especially the regulations governing them. Our approach is to sell the customer a product that he knows in all its contours”, he explained.
At the end of the discussions, Arouna Gouba, the head of banking transactions at Societe Generale Burkina Faso, said he was satisfied with the interest shown by the participants in the workshop. For Emmanuel Miloungou, Administrative and Financial Director (DAF) of the International Distribution Company (SODI-SA), participating in the meeting, having working capital for activities is not easy for most companies.
« SGBF offers to pay us our bills and to take responsibility for collecting its bills. It’s a good solution that allows us to solve our cash flow problems. It helps to shorten payment terms,” he appreciated.
Akim KY
Burkina 24
