May 14, 2014

Kenya Start up Uses Technology To Disrupt Small Business Lending

Kopo Kopo, a leading provider of business management software with over 10,000 clients in Kenya, is pleased to announce its new merchant cash advance service called “Grow.” Unlike a traditional bank loan, Grow is designed to help businesses grow and prosper by accommodating their cash flow cycles. Grow cash advances are disbursed in minutes, require no personal guarantee and come with no late fees or penalties.

“In our years of doing business, we’ve seen even our best customers struggle to access capital for their businesses,” according to Kenya CEO, Francis Mugane. “Given our mission  to help businesses grow and prosper, solving this problem with Grow was a logical next step – and it’s only one of many steps to come.”
Businesses automatically become eligible for “Grow” after accepting electronic payments via Kopo Kopo for three months.

 The more electronic payments a business accepts via Kopo Kopo, the more cash they are eligible to receive at a lower fee. Once eligible, a business owner chooses how much they want to receive and what percentage of daily sales should be deducted via Kopo Kopo to repay the cash advance. The business owner then agrees to a simple fixed fee, and funds are disbursed to their Kopo Kopo account within minutes.

“We believe electronic payment acceptance is the first step on the path to modern, digital commerce,” said Mr. Mugane. “We see Grow as an opportunity to help businesses access capital while simultaneously encouraging them to start moving away from cash.”

Grow is ideal for businesses looking to replenish stock, refurbish their premises, or launch a new business line. Since repayments are based on electronic sales, Grow perfectly aligns with a business’s cash flow: Kopo Kopo deducts a larger amount when sales are high, a smaller amount when sales are low, and no amount when there are no sales.