Solv Kenya partners with MSMES, banks for supply chain financing

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Digital SME marketplace  Solv Kenya In SCF Partnership With MSMEs and Standard Chartered bank to provide micro, small, and medium-sized enterprises (MSMEs) with access to supply chain financing at competitive interest rates.

On the e-commerce platform, buyers and sellers will be able to improve the efficiency of their supply chains thanks to the partnership, which will last for three months.

  • Solv Kenya has partnered with Standard Chartered to offer MSMEs affordable supply chain financing
  • The three-month partnership will help buyers and merchants to increase their supply efficiency on the e-commerce site
  • As part of the agreement, over 700 micro, small, and medium-sized enterprises (MSMEs) will have the opportunity to network with representatives from various financial institutions

During the first quarter of the trial period, Solv collaborated with eight multinational manufacturing and trading organisations, over 700 micro, small, and medium-sized enterprises (MSMEs), and three financial partners to co-design an invoice financing programme. The partners consist of companies such as EABL, BAT, and Nestle, amongst others.

As part of the agreement, over 700 micro, small, and medium-sized enterprises (MSMEs) will have the opportunity to network with representatives from various financial institutions. This will help them strengthen their existing relationships and give them access to financing at more reasonable rates.

MSMEs will also benefit from the cooperation by taking advantage of the contacts they have with suppliers, who will introduce their pool of micro, small, and medium-sized enterprises (MSMEs) to Solv Kenya’s network of financial institutions and give them access to financing at favourable rates. MSMEs will also benefit from the partnership by leveraging their relationships with suppliers.

Sheila Kimani Omukoba, Chief Executive Officer (CEO) of Solv Kenya, commented on the agreement by stating that the contract will expedite growth for businesses in the country, particularly during this digital era.

She stated, “We are thrilled to use technology and data to revolutionise, simplify, and accelerate growth for micro, small, and medium enterprises in Kenya.”

In addition to resolving the various problems that micro, small, and medium-sized enterprises (MSMEs) are confronted with, the programme will also be able to take advantage of competitive pricing from a variety of different options, increase the number of customers served by manufacturers and traders, and open up new markets for financial institutions.

MSMEs facts and statistics [Photo/Kenya business Gulde org]

Providing Support for the Expansion of Businesses While Managing Cash Flow Efficiently

 

The SCF framework makes it easier for micro, small, and medium-sized enterprises (MSME) to expand their businesses and achieve better sales and turnover.

In addition, it offers effective cash flow control for small business participants along the supply chain.

SCF institutions play an essential role as a catalyst in strengthening the capital skills of MSMEs. This paves the way for improved inventory management and increased working financing and is made possible by the fact that SCF limitations are, for the most part, unsecured.

The SCF market is quickly becoming more popular among micro and small-sized businesses, and it has massive untapped potential for expansion.

Access to low-cost or unsecured working capital will be a key differentiator that will determine the success or failure of small and medium-sized businesses as global economies become more volatile, and business competition increases globally. This factor will be particularly important for determining whether a company will be acquired or go out of business.

Supply Chain Finance: Bridging the Funding Gap for Micro, Small, and Medium-Sized Enterprises

 

SCF  refers to technology-based solutions that reduce the costs of financing and boost business efficiency for buyers and sellers involved in a sales transaction. It helps them by filling up the holes in their finances and giving them the liquidity they so sorely need.

Companies that provide supply chain finance (SCF) are quickly becoming preferred loan solution partners for the grossly under-served micro, small, and medium-sized enterprise sector.

The new small business capital funding solutions, which are powered by modern and cutting-edge financial technologies, possess the potential to help small enterprises with their funding problems.

By providing bespoke credit options and innovative loan solutions, these modern fintech lenders have the ability to transform the finance ecosystem for small businesses.

SCF lenders have a larger outreach among small businesses, which ensures quicker loan approvals and seamless transaction processing on scheduled schedules with flexible terms.

This is in comparison to large lending institutions, which have a far more limited customer base. SCF companies have differentiated themselves from traditional lenders by developing a tech-enabled operational interface.

This interface has been enormously helpful in reducing the amount of bureaucratic red tape and limits that are typically associated with traditional lenders.

By creating an environment in which small firms and major corporations are able to compete on equal terms, a new generation of financial actors has been successful in fostering the growth and prosperity of the former.

Read Kenya: Stanbic Bank receives KSh1 billion from AGF to support SMEs

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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