26 Apr 2017

First National Bank and Hollard Insurance have partnered and come up with a guarantee scheme which will see a less capital demanding payment solution for local fuel retailers.
With the FNBB-Hollard guarantee scheme, the collateral required for the issuance of a payment guarantee is discounted.
The guarantee scheme also provides security for performance, reduces risks and gives assurance of the serious intent and business standing of the party whose obligations are underwritten.

Speaking at the product launch on  April 25, FNBB head of commercial banking, Mr Kago Difele said the partnership sought to address the financial challenges faced by some fuel retailers.
He said the bank understood the importance of the fuel industry to the, hence the development of such value proposition.
With the guarantee scheme, unlike before, Mr Difele said the security required for the issuance of a payment guarantee was 25 per cent while 75 per cent was covered by Hollard. He also noted that they had improved on their turn-around time in issuance of a payment guarantee, from three weeks to two days.

Meanwhile, Vivo Energy Botswana retail manager, Mr Pramodh Huneewooth said their business strategy was simple because they wanted both shareholders and retailers to maximise the value they got from the shell brand.
Vivo Energy Botswana is the first fuel retailer to utilise the value proposition.
Mr Huneewooth said the FNB-Hollard product would address retailers’ working capital constraints and would enable them to grow their respective businesses.
“It is a gateway to a holistic offering, including guarantee scheme, preferential banking rates, overdraft, lending facilities, specialised finance, insurance and investments to meet the fuel retailers banking needs,” he said. ENDS