The new service will be hosted on an online platform run by fintech Ennovative Capital, a Kenya-based company that licences the software from US developer PrimeRevenue. Late payments for goods and services are a common problem for small Kenyan businesses. Retailers take an average of five to seven months to pay suppliers, the ministry of trade found in a 2017 study.
Companies that contract small suppliers will get instant access to cash equivalent to the orders, allowing them to pay their suppliers faster. The service will be offered through an open platform, giving participating buyers and suppliers access to liquidity.
The service is also seeking to harness technology since it is web-based, cutting a lot of administrative challenges and paper work. The facility is backed by African Guarantee Fund, an initiative of the African Development Bank aimed at spurring financing for small and medium enterprises on the continent.
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