Many small and medium businesses have been going through a major financing struggle. This has been aggravated by the tightening of credit offering by a majority of Kenyan banks following the introduction of a law that capped interest rates in September 2016.
Since then, small and medium enterprises have been termed as too risky to lend to in a credit classification that has left many potential businesses on the verge of collapse.
Today, though, Kenyans who run small and medium businesses can afford to smile. This is because a global trade platform that facilitates trade and financing for small and medium enterprises has opened up funding for SMEs in Kenya.
Since July last year, the platform, known as Kountable, has been handling trade finance for SMEs with Sh. 5 million being the minimum deals they have handled. “We are bringing easy sourcing, finance, logistics and deal management so that local entrepreneurs can focus on finding opportunities and growing their businesses,” says Kountable in a statement to Bizna Kenya.
Interestingly, small and medium business owners seeking to access finance do not require collateral when submitting their proposals. According to Kountable’s chief executive officer, Chris Hale, the internet-based platform will create a bridge between Kenyan SMEs and global funders and thus ease access to affordable credit for them to grow and accelerate their businesses.
Business owners looking for funding will be able to access capital based on the strength of their social capital. This means that your network of relationships and contacts will be of essence when tabling your proposal. “Think of what you do each day, calls, texts, emails, messages and connections…The path you wage through every day leaves a trail. We measure this trail and give you a rating or your kScore, which we use to help you get the financing you deserve,” says Mr. Hale.
Kountable Ltd Kenya is operating as a subsidiary of a US-based firm, Kountable, that links SMEs with foreign funders.
Apart from funding, Kountable is also connecting local SMEs to global product manufacturers and suppliers. “We will also fully participate in helping SMEs tender for public contracts after which we will provide financing for those that win major procurement opportunities,” says Mr. Hale.
You can access Kountable’s platform on www.kountable.com.
