IPED launches invoice financing to boost cash flow in oil and gas sector

The Institute of Private Enterprise Development (IPED) has officially launched a new invoice Financing Loan Product specifically aimed at supporting businesses operating in Guyana’s oil and gas sector and other productive industries. This initiative was designed strategically to provide short-term working capital to companies with verified invoices but are awaiting payment.

IPED said the initiative targets registered businesses that hold executed contracts and outstanding invoices. By offering access to immediate funds, the initiative seeks to bridge the gap between service delivery and payment settlement, allowing companies to meet contractual obligations and conduct business without interruptions.

As Guyana’s economy continues to expand, particularly through oil and gas, there has been a rise in the creation of small and medium scale businesses, where some have faced cash flow challenges while waiting payment from major contractors. IPED’s new facility is intended to address these interruptions by easing cash flow challenges and helping businesses become and remain financially stable.

The product offers three financing categories. Category one offers up to 80 percent of the invoice value, category two up to 90 percent of collateral value and the third category offers an unsecured financing of up to 2.5 million. These options provide flexibility. These options provide flexibility to businesses based on their financial needs and capacity.

According to IPED, the initiative is expected to increase local participation in the oil and gas value chain while also supporting growth in other sectors in the economy the organization remains committed to promoting, economic resilience, private sector development and entrepreneurship.

Eligible businesses are encouraged to contact IPED for information on the application procedure and eligibility requirements.