Pesapal has partnered with Sokohela, a digital credit provider licensed by the Central Bank of Kenya (CBK), to launch a new credit product for Small and Medium-Sized Enterprises (SMEs) in the country.
The loan product will offer fast and flexible financing solutions for SMEs that face challenges in accessing credit from traditional sources.
In a press statement, Pesapal Founder Mr. Agosta Liko said that the launch of Pesapal Credit is part of the company’s mission to provide innovative and inclusive payment solutions for businesses and consumers in Kenya.
He observed that SMEs are the engine of the Kenyan economy, but they often faced difficulty accessing credit due to high-interest rates, stringent collateral requirements, lengthy procedures, and lack of financial records.
“We understand these challenges and have partnered with Sokohela to address them. We’re all about our merchants being confident with their financial decisions and becoming world-class at what they do – regardless of their size. We design our tools on the Pesapal platform to help entrepreneurs achieve their business goals without overextending,” stated Liko, adding that the finance terms were transparent and easy to understand, supporting comfortable repayment management.
Pesapal Sokohela Loan offers SMEs a range of benefits including; digital scoring, approval, and disbursement of loans, competitive interest rates, flexible repayment terms of up to 12 months, no collateral or guarantor required, transparency in pricing of the loan with no hidden fees or charges, and Online application and management of loans via the Pesapal Platform.
Sokohela Chief Executive Officer (CEO) Mr. Nickson Onyango said that the partnership with Pesapal is a strategic move to leverage Pesapal’s extensive network of merchants and customers across various sectors such as hospitality, retail, education, and travel.
“Our partnership is a testament to the power of collaboration in driving innovation and growth in Africa’s digital economy. We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently,” he assured.
Onyango said that Sokohela is excited to partner with Pesapal, a trusted and reputable payment service provider in Kenya and together, both firms aimed to reach out to more SMEs and offer them convenient and affordable credit solutions that suit their needs.
“We believe that by doing this, we are supporting SMEs and our country’s social and economic development,” the CEO remarked.
The Merchant Credit solution is powered by Pesapal’s proprietary credit scoring algorithm that analyzes the transaction data of SMEs from various sources, such as mobile money, e-commerce platforms and POS systems that allows the company to offer customized and affordable loans to SMEs based on their cash flow and business performance.
On the other hand, Sokohela, which offers tailor-made loan products to SMEs in Kenya, uses artificial intelligence and data analytics to assess the creditworthiness of SMEs and provide them with instant loans via mobile money platforms.
For more information on how to access the loan, SMEs are encouraged to visit https://www.pesapal.com/business/credit
