Announcing its 2023 Q2 achievements which include now serving 1.3 Million businesses, Moniepoint, leading African Fintech platform, mentioned it 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. The product is already widely adopted by a number of their businesses; supermarkets, fuel stations, etc. and currently has zero defaults so far.
Report shows 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 $2.4million.”
About Moniepoint MFB
Moniepoint Microfinance Bank is regulated by the Central Bank of Nigeria, and the definitive bank for small and medium-sized businesses in Nigeria; providing an all-in-one solution to help companies grow without limits. Founded in 2019, Moniepoint’s technology powers over 1.3 Million businesses, and processes the majority of POS payments in Nigeria. The company offers payment, banking, credit and business management tools businesses need to succeed. It aims to power business dreams and grow local economies by providing essential technology tools to every business owner, no matter their digital literacy level.
For more information, please visit: https://moniepoint.com
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