Source: Joseph- Albert Kuuire/ Tech Nova
Moniepoint, a leading African Fintech platform, has launched Working Capital Loans, a solution designed to help merchants solve capital challenges and keep their businesses running and growing.
The Working Capital Loans product offers businesses a line of credit relative to their capital (or stake) in the business. They are short to medium term loans ranging from 7 to 120 days which can be easily and in some cases automatically renewed.
This way, any merchant who runs his business via their Moniepoint account may have access to a line of credit proportional to the business that passes through the Moniepoint account.
Reports show that access to finance remains one of the biggest hurdles faced by African small businesses, which predisposes them to an inability to invest in and grow their business.
With insufficient working capital loans, these businesses are held back from restocking so they can scale as they ought to.
The new product allows businesses access to a revolving credit facility that they can use for purchasing additional inventory and short-term working capital for smooth business operations – solving two major problems; access to affordable credit whenever they need it and convenience in accessing the credit.
Speaking on the launch, Vice President of Business Loans, Tobi Amira, said: “We are conscious of the fact that MSMEs are the backbone of African economies and we are always looking for new ways to help African businesses have access to solutions and tools that accelerate their growth.
As part of our commitment to partnering with our merchants to help them grow, we are willing to provide a percentage capital contribution as a line of credit for the daily running of our partners’ businesses. As at the end of June, we had disbursed $3.3million, with a gross loan portfolio value of $2.4 million.”
Source: Joseph- Albert Kuuire/ Tech Nova
