THE First Factoring Company of Zimbabwe (FFCZ) has entered into a partnership with the Venture Capital Company of Zimbabwe (VCCZ) in a move expected to inject new financial products into the mar
Under the deal, which was concluded in May this year, VCCZ injected equity capital into FFCZ and is now a major shareholder.
FFCZ managing director Collen Magurah said the partnership with VCCZ was expected to bolster the company’s chances of expanding its business and opened avenues for greater networking among the wide array of contacts established over the years by VCCZ.
“We see greater growth for the company from here onwards, moreso given that we are now able to tap into the vast experience earned over the years by our partner,” said Magurah.
VCCZ is an investment company set up specifically to provide equity finance to new and expanding business ventures in exchange for shareholding.
It invests in viable business projects that exhibit great potential for wealth and employment creation.
Michael Gwabva, who represents VCCZ on the new FFCZ board, said the investment company now holds a sizeable shareholding in FFCZ and noted that the move to take up equity in FFCZ was testimony of the confidence VCCZ has in the company.
“The FFCZ management has lots of brilliant ideas on how to grow the business and we see great potential in the company,” Gwabva said.
FFCZ is a young financial services company set up in 1998 to fill the void caused by the skewed lending practices of established financial institutions, which tended to be targeted at large companies.
Since its inception it has introduced some innovative new products into the market which include rental discounting, installment discounting and order financing.
Through its flagship rental discounting, FFCZ enables small to medium-scale entrepreneurs to meet their short-term cash-flow requirements.