National Association of Small and Medium Enterprises (NASME) says the duration at which payments of exported products are made is one factor which is negatively affecting growth of small scale enterprises in the country.
According to NASME’s National Coordinator William Mwale, the current letter of credit which provides 180 days guarantee for payments of exported products is just too long for most small scale business persons who mostly run their businesses with limited capital.
“The duration is awful, one is supposed to get his or her money after 180 days after delivery and this is just too much in business,” said Mwale.
He has therefore asked policy makers to consider revising the letter of credit which according to him is killing export trade among small scale business operators in the country.
“Most of these small scale business people have limited funds so for them to stay back home for this period it simply means kicking one out of business, therefore I would ask policy makers to consider taking this issue back to the drawing board and see the way forward,” he concluded.