Like any other entrepreneurs across the globe, Kenyan entrepreneurs often find themselves facing stubborn financial straits. When this happens, their businesses implode. Cash constraints bite hard, culminating in staff layoffs. In extreme cases, businesses close shop.
Unlike their counterparts in the developed world who can easily access affordable credit, local entrepreneurs have few options.
The statistics are scary. Data from the Kenya National Bureau of Statistics shows that 52% of all loan applications made by SMEs were rejected by banks and other financial institutions.
To change this narrative, a non bank and non deposit taking financial institution is introducing an innovative way of financing SMEs.
Momentum Credit, established last year, is pioneering the tried and tested invoice factoring product to finance SMEs without demanding any form of collateral from them.