Frequently Asked Questions

Eligible companies include government regulatory authorities, DSE listed companies and embassies, and other companies approved by CashMe Tanzania.

Invoice discounting is the practice of using a company's unpaid invoices to raise working capital & fulfil its financial needs. Traditionally, financial institutions including banks have been discounting invoices for businesses. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value.

CashMe Tanzania provides a marketplace/platform for business owners to sell and investors to purchase invoices raised on blue-chip companies. Investors looking to invest money for a short term (30-90 days on average) can earn attractive returns on their investment by purchasing these future cash flows.

Register yourself with us on our website as an investor and we will help you diversify your portfolio in this unique asset class with varying maturity periods of 30 to 90 days at an attractive risk-adjusted rate.

As of now, you can invest a minimum of TZS50,000.00 per invoice. You can choose different investment plans as explained under Investor Guide. You can download the investor guide on this link Investor Guide.

Signing up on CashMe Tanzania is very simple. Click join as borrower or investor buttons on the home page and you will provide basic personal information including your contact details. Our relationship managers will contact you to complete the registration process. As a part of our KYC norms, we will need a small set of documents to ascertain your investor's status. Once those documents are received and vetted, you will receive an email from us notifying you of your account post successful onboarding.

CashMe Tanzania offers two trading options; (i) That offer a predetermined discounting fee which ranges between 4% to 8% per month and (ii) the one in which investors can fix their price and the borrower will be able to choose the suitable deal and reject the rest. In this second option, an investor will know how much he or she will earn after the borrower accepted the deal.

CashMe Tanzania provides a technology platform to connect sellers of invoices and investors and execute transactions between them. We analyse the credit standing of both invoice sellers and owing companies using audited accounts, readily available public reports or information, repayment history on the platform (Invoice seller), enterprise report, and international rating agencies (Fitch, Moody’s and S&P) report (blue-chip company) among others before onboarding and allowing the seller to post the invoice. This is done periodically to minimize credit risk to our investors. We also provide this information to investors, if requested.

CashMe Tanzania does not guarantee any fixed return to its investors and the investment would be subject to the traditional market risk associated with invoice discounting. However, in the event of default, CashMe Tanzania will exercise the rights in the invoice discounting agreement signed by the borrower to collect the debt as much as possible to repay investors.

Tenure of the investment is linked to the invoice payment date. Every invoice will have a different maturity period. We have seen that historically it has ranged from 30 days to 90 days.

Invoice Financing is a very niche product in the asset-based financing arena. It carries minimal undue risk while generating a good return on your investments. In advanced economies, it has emerged as a major form of investment. CashMe Tanzania Invoice Financing platform ensures a higher short-term yield for its investors. We are applying conservative and ever-evolving risk management policies to minimize the risk of investing for our investors.

Your data will be protected as per Bank of Tanzania (Financial Consumer Protection) regulation 2019.

We have established a due diligence process in place backed by manual verification of the parties. We are also very selective in choosing the people with whom we do business. The borrowers are obliged legally to pay back the amount owed to the investors irrespective of whether the invoice is paid by their customer. In the remote case of a default by the customer, we will facilitate legal help for them and will help in recovering the loss. We have also tied up with various collection agencies to recover the amount due from the business in case of default.

Any investment comes with its own associated risk. The risk could be total or part capital erosion. However, we have taken several steps to mitigate the risk – both strategically and operationally:

• Comprehensive risk management framework - Detailed credit analysis of sellers and their financials at onboarding
• Invoice verification process- Invoices are verified physically and vetted by the owing company. Moreover, invoices are restricted to only blue-chip companies.
• Strong legal framework – All sellers are required to sign our legal agreements to ensure our investors are well protected.
• If a blue-chip company does not pay the invoice money in the future – the small business is still liable to pay the money owed to the investor.
• If the small business collapses, the blue-chip company would still pay the invoice money, and this will be paid directly into the escrow account which will be transferred to the investor.
• CashMe Tanzania is a tech platform, and it does not assume any credit risk on behalf of the investors.

Our business model is one where investors do not face any execution risk. Our credit risk analysis system takes place at multiple stages.

Business-Onboarding Stage We follow a three-pronged approach that is dependent upon the business, the enterprise, and their relationship to arrive at a CashMe Tanzania Credit Score for every business. We look at, among other:

• Credit credentials (Credit reports of company and individual reports of directors)
• Financial Health & Stability (All financial and company documentation)
• Credit Rating of Enterprise
• Fundraising Ability
• Liquidity
• Market News
• Verification of every invoice before listing on the platform

CashMe Tanzania operates an Escrow account for a group of investors at our partner Bank and the opening of an escrow account for each individual member. All transfer of funds happens through these escrow accounts. In case of liquidation of CashMe Tanzania due to any legal or financial reasons, money in a member's escrow account will be returned to the respective owners immediately. Money involved in the process will not be transferred to CashMe Tanzania's account at any stage (except service fees and government taxes, etc.)