Nairobi — Digital payment company Pesapal has partnered with digital credit provider Sokohela to launch a new credit product for small and medium-sized enterprises (SMEs).
The partnership seeks to provide SMEs flexible financing solutions emissions challenges in accessing credit from traditional sources.
Pesapal's dounder 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.
"SMEs are the engine of our economy, but they 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," Agosta said.
"We're all about our merchants being confident with their financial decisions and becoming world-class at what they do - regardless of their size," he added.
"We design our 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."
Pesapal Sokohela loan offers SMEs a range of benefits such as digital scoring, approval and disbursement of loans and flexible repayment plan of up to 12 months, among others.
The Merchant Credit solution is powered by Pesapal's proprietary credit scoring algorithm that analyzes the transaction data of SMEs from various sources, including mobile money, e-commerce platforms and POS systems.
It then allows them to offer customized and affordable loans to SMEs based on cash flow and business performance.
"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.
Pesapal offers various payment products and services to individuals, businesses, and institutions such as online payments, point-of-sale payments, mobile payments, bill payments, and event ticketing.
