Logistics financing is a specialised form of supply chain finance that provides funding based on the movement and storage of goods. Instead of just looking at a firm's balance sheet, lenders use the actual goods (inventory, in-transit cargo) as collateral.
For a country like Kenya, whose key exports (tea, coffee, cut flowers, horticulture, and now apparel) are often perishable or time-sensitive and dominated by Small and Medium-sized Enterprises (SMEs), logistics financing can be transformative.
