OREANDA-NEWS. March 04, 2010. Inecobank in collaboration with the USAID FS Share Program is launching a new product targeted at SMEs in production, service and trade sectors. The purpose of the Program is to assist small and medium-sized enterprises to increase their sales volumes via enhancing the use of short term working capital finance products using a value chain finance approach, reported the press-centre of Inecobank.

This service is called Purchase Order Finance (POF), which is a form of pre-shipment working capital /trade finance secured by a verified purchase order or sales contract. Via this service we provide the advance pre-shipment, so that our clients can purchase raw materials, inputs, packaging, goods for resale etc, and/or cover other expenses necessary for the execution or delivery of a product or service, e.g. salaries, shipment etc.

Inecobank plans to start implementing POF within two months and will invest up to USD 5mln funds for the implementation of this program. Within the framework of this program the bank will provide purchase order financing to SMSs from the following value chains:

Information and Communications Technology
Health Care
Tourism and Hospitality
Food processing and Agriculture
Trade and Retail