Access Bank Botswana says small and medium enterprises (SMMEs) need innovative financing solutions to survive mounting cash-flow pressures, as unpaid Government Purchase Orders reportedly exceed P20 billion.
In an article authored by the bank’s Head of Business Banking, Bright Motsu, the institution highlighted the growing strain on businesses that have either secured contracts but lack the capital to execute them, or have already delivered services but continue to wait months for payment.
Motsu noted that delayed payments are leaving many entrepreneurs unable to pay suppliers, retain staff or pursue new opportunities despite having viable businesses. He argued that the challenge is not necessarily poor business management, but a liquidity crisis affecting enterprises across the country.
To address the gap, Access Bank is promoting Purchase Order Financing, which enables businesses to access funding to fulfil confirmed orders, and Invoice Discounting, a facility that allows companies to unlock cash tied up in unpaid invoices before clients settle their accounts.
According to the bank, these financial solutions are designed to help Botswana’s SMMEs maintain operations, pursue growth opportunities and strengthen their resilience in an increasingly challenging economic environment.
