Digital payment firm Pesapal has partnered with Sokohela to launch a new credit product for Small and Medium Enterprises(SMEs) to provide flexible financing solutions to emissions challenges in accessing credit from traditional sources.
Pesapal Chief Executive Officer(CEO) and Founder Agosta Liko said Pesapal Credit is part of the company’s mission to provide innovative and inclusive payment solutions for businesses and consumers in Kenya.
Liko noted that SMEs often face 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 size.”
Further, he noted that the firm designs its tools on the Pesapal platform to help entrepreneurs achieve their business goals without overextending.
“ Finance terms are transparent and easy to understand, supporting comfortable repayment management.”
The Pesapal Sokohela loan provides SMEs with several advantages, including digital scoring, quick loan approval and payout, and flexible payback terms of up to 12 months.
The Merchant Credit solution is powered by Pesapal's in-house credit rating algorithm, which examines transaction data from SMEs obtained from various sources, such as mobile money, e-commerce platforms, and POS systems.
Then, based on cash flow and company success, they can offer reasonable and customised loans to SMEs.
“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,” Sokohela CEO Nickson Onyango said.
