In the Kenyan economy, Small and Medium Scale enterprises are the cornerstone of the Kenyan economy. Data from the Kenya National Bureau of Statistics (KNBS), MSMEs account for over 80% of employment and 40% of Gross Domestic Product (GDP). However, more often than not, these SMEs usually face a cash crunch which is why the Family Bank stock financing facility is a life saver.
For a business, running out of stock can mean more than just missed sales it can damage customer trust, slow growth, and leave a business struggling to compete. For traders, wholesalers, and retailers, having enough working capital to keep shelves full and operations running smoothly is a constant challenge.
Family Bank Kenya understands this struggle and that’s why they introduced their Stock Finance Facility. This is a flexible and accessible solution designed to help businesses replenish and expand their inventory without the stress of cash flow shortages.
The Stock Finance Facility is a tailored lending product that allows business owners to access funds specifically for purchasing stock. The facility enables entrepreneurs to quickly restock and meet demand with ease. This is important because at times businesses are forced to sell their goods on credit. This means a delay in accessing working capital which can prove to be detrimental in instances where the business cannot be able to get finances that can plug in the deficit.
So why should businesses take up the Family Bank stock financing facility?
Quick access to Capital
Family Bank understands that for a business, time is of the essence and a day an make a difference between making or loosing a sale. As such they offer a quick and convenient access to the stock financing facility to ensure that businesses can access funding faster to ensure that they never run out of stock or miss a sale.
Business Growth
For a business, stock ties up a lot of finances which would have otherwise been used to finance other aspects of the business. With the stock financing facility a business can utilize these funds to finance other aspects of the business which can lead to growth for example marketing, opening a new branch or even acquiring a new production machine. All which can help a business expand and move to the next level.
Flexible Loan Terms
The bank understands that every business is different, as such Family Bank offers flexible loan terms. These enable entrepreneurs to match repayment schedules with their sales cycles, ensuring they don’t feel the pinch during slower months.
Customer Loyalty
As a customer, a well-stocked business sends out the message that it is doing well and can be trusted with orders. Because who wants to deal with a business that can’t deliver, as such being able to deliver consistently ensures that customers will always come back. Thus, creating a loyal group of customers which ensures consistent sales and growth.
Competitive Advantage
A well-financed business is able easily pivot to suit the changing customer needs and preferences. For example, if a business sells say shoes and there is a new shoe trend in the market. They can be able to quickly bring in the new stock which can enable them to take advantage of the demand. This is not the same for businesses without access to such a facility whereby they would need to first sell off their current stock to enable them to access the capital for the new order.