Enhancing Invoice Factoring and Loan Management at Ziada Credit Solutions Limited

Client Overview

Ziada Credit Solutions Limited is a prominent credit provider specialising in Factoring and Reverse Factoring services. Headquartered in Mauritius and regulated by the Financial Services Commission, Ziada serves medium-sized businesses across Africa. By enabling clients to accelerate cash flow from receivables, Ziada empowers businesses to navigate cash flow constraints while avoiding reliance on traditional bank loans.

The Challenge

Managing invoice factoring and loan-related processes at Ziada posed significant operational challenges. Invoice factoring, a process where Ziada advanced funds to suppliers against invoices pending from buyers, required precise tracking of:

Advance Payments: Determining upfront funding (typically 80–90% of invoice value) for suppliers.
Interest Calculations: Automating accurate interest rates and charges associated with invoice repayment timelines.
Reconciliation and Payment Tracking: Ensuring accurate linkage between invoice payments from buyers and associated loans. The necessity of having a loan per invoice and a non-interest bearing client reimbursement loan type were critical requirements to accurately administer their product offering (and very different from standard loan products). These are non-standard industry offerings amongst other loan management systems providers and factoring-orientated fintech platforms as Ziada has confirmed post multiple demo’s with other credible fintechs and loan platforms observed routinely over the past 4-years. Additionally, the loan features required by Ziada also assist with their achievement of more efficient audits.
Scalability: Handling growing transaction volumes as Ziada’s client base expanded.
Affordability: Initially, Ziada relied on manual workflows using spreadsheets to manage these processes. This approach proved cumbersome, prone to human error, and time-intensive, particularly as the organisation scaled its operations.

The Solution

Ziada Credit Solutions partnered with Astech to deploy AstechLMS, a tailored Loan Management System designed to meet their specific requirements for managing both Invoice Factoring and Loan Management seamlessly.

“LMS, as hosted on the Sage CRM platform and developed by Astech, addresses Ziada's operational needs by providing clear workstreams and professional outputs for its administrators, managers and clients.” – Neo Montja

How AstechLMS Addressed the Challenges

Invoice Factoring Automation
- Advanced Funding Management: AstechLMS automated the calculation of funding amounts, providing Ziada with a streamlined process to disburse funds to suppliers efficiently.
- Interest Rate Automation: The system dynamically applied interest rates based on pre-defined terms, reducing manual input errors and ensuring compliance with Ziada’s policies.
Loan Management Integration
- Unified Platform: AstechLMS consolidated the management of invoice factoring and related loan workflows, reducing duplication of effort across disparate systems.
- Repayment Reconciliation: The system linked invoice repayments from buyers directly to their associated loans, ensuring real-time updates and accurate financial tracking.
Enhanced Reporting and Visibility
- Customisable Dashboards: Real-time data on outstanding invoices, interest earned, and repayment schedules allowed Ziada to make data-driven decisions.
- Regulatory Compliance: Built-in reporting tools simplified regulatory submissions, meeting requirements of the Financial Services Commission.
Scalability and Efficiency
- AstechLMS scaled alongside Ziada’s growing transaction volumes without compromising performance, providing long-term operational reliability.
- Time Savings: Automated workflows reduced administrative burdens, freeing up Ziada’s team to focus on strategic growth initiatives.

“The reliability of the system, our ease of access to the developers and to Anthony, and the willingness of the Astech team to brainstorm with us about how to achieve ever-shifting requirements and requests in a timely manner, is why Ziada has maintained and grown its relationship with Astech as one of its strategic partners.” – Emily Adendorff and Hardi Wilkins

The Results

The implementation of AstechLMS transformed Ziada’s operations:

Efficiency Gains: Transaction processing times decreased, allowing Ziada to handle more clients with the same resources.
Accuracy Improvement: Automated interest calculations and reconciliation eliminated errors previously common with manual workflows.
Enhanced Client Experience: Faster transaction processing and accurate reporting strengthened Ziada’s relationships with suppliers and buyers.
Strategic Scalability: The solution provided the infrastructure necessary for Ziada to expand its footprint across Africa.

AstechLMS proved instrumental in addressing Ziada’s complex needs for managing invoice factoring and loan workflows. By automating and integrating key processes, the solution enhanced efficiency, reduced errors, and empowered Ziada to support its growing client base effectively.