Business owners now have access to goods on credit thanks to Fuliza ya Biashara overdraft facility provided by Safaricom and KCB Bank Kenya (KCB).
With the ‘Fuliza ya Biashara,’ businesses using Lipa Na M-PESA can process payments despite having insufficient money.
Transactions to other Till Numbers and PayBill Numbers, to individuals, and withdrawals to the specified number or at an agent are all eligible for the credit facility when initiated from a Lipa Na M-PESA Business Till.
The program would provide an advance for an overdraft of up to Sh 400,000 with a 24-hour grace period free of interest charges.
For small enterprises, Fuliza ya Biashara offers fast, low-interest loans of up to KSh. 400,000, allowing them to meet their funding requirements quickly and effectively.
The M-PESA Business App and the Lipa Na M-PESA Transacting Till will both support Fuliza ya Biashara.
A business owner can get an overdraft starting at Sh1,000 and going all the way up to their designated maximum of Sh400,000.
A 2 percent daily access fee is assessed on balances that are overdue by more than 24 hours, with a maximum of 29 days to repay the overdraft from incoming till payments.
After making a repayment, the Fuliza ya Biashara limit is automatically reset, allowing business owners to take out a new overdraft for any amount, including the amount they just paid back.
According to the two companies, the facility will work to alleviate the shortage of affordable credit that is experienced by small and microbusinesses, which are classified as high-risk by lenders.
Each business’s overdraft limit is determined by its repayment history and its Lipa Na M-PESA transaction history.
M-PESA’s Fuliza ya Biashara is the latest in a series of developments aimed at the platform’s business owner clientele.
To facilitate payments through POS terminals and streamline cash flow management, Safaricom released the Lipa Na M-PESA Business Till and M-PESA Business App in 2020.
The M-PESA Business App has been downloaded by more than 390,000 businesses, which currently accounts for more than 50% of all business transactions on M-PESA.