It has often been said that the Small and Medium Sized enterprises SMEs are the drivers of the Kenyan economy. This can be seen by the fact that they account for more than 80% of employment and 90% of the registered business in Kenya. However, one of the biggest hurdles that they face is financing something NCBA is tackling in a bid to boost their growth.
Other than financing, NCBA has transformed itself to be a comprehensive growth partner for SMEs. From tailor made solutions to enabling market access the bank is empowering SMEs to not only survive but flourish in a highly competitive environment.
Here are some of the ways that NCBA is empowering SMEs.
Flexible Financing
For the longest time, SMEs have been overlooked by financial institutions despite being the largest employer in the country. This is largely due to the issues such as stringent collateral requirement and complex application processes that can be daunting to some.
However, unlike traditional banking models NCBA offers flexible repayment terms and quick access to funds, recognizing that agility is key in the SME space.
A good example of this Mary Njue CEO and Founder of Epicenter Africa a company that deals in drilling boreholes. She narrates that when she started out, she managed to get an order which was twice her annual revenue at the time. After shopping around for a bank, she settled on NCBA because they we willing to finance her despite the fact that her business was fairly new and wasn’t banking with them previously. With this loan, she was able to grow and expand her business something which she would not have been able to without their financing.
Tailor Made Solutions
NCBA understands that a one-size-fits-all approach simply doesn’t work for the diverse landscape of SMEs. Their financing portfolio reflects this understanding, offering a range of solutions designed to meet specific needs and stages of business development.
Some of the solutions include.
Stawi
Stawi is an innovative solution designed for entrepreneurs to grow their business. The service provides you with a digital account for business operations, allowing you to manage payments and collections.
This in turn enables one to access to easily access credit to aid in business development. Customers also enjoy low interest rates on loans at 9% per annum. It is suitable for businesses that don’t have proper records that would have otherwise restricted them from accessing credit. This product is available for individuals and businesses that have a turnover of between Ksh. 50,000 – Ksh. 250,000.
Stock Loans
At times, businesses struggle to restock due to cashflow issues. It was as a response to this that NCBA unveiled their stock loans solution to finance the purchase stock for normal business operations.
One can be able to get a maximum loan of Ksh. 6 Million without the need for security. With a maximum repayment period of 36 months subject to the nature of stock and business net cash cycle. You also get a free insurance cover for the stock.
Upskilling
Other than the financing aspect, NCBA works to ensure that SMEs are able to upskill through trainings and webinars. It is through this that SMEs are able to get the knowledge that they need to navigate the complexities of running a business.
From advisory on the risks that they are likely to face when running a business to how to access markets. NCBA ensures that SMEs are able to thrive and grow to the next level.
Collaboration
NCBA works to foster a collaborative environment for SMEs that enables them to learn from each other and industry experts.
The bank often hold breakfast meeting and even korogas where the SMEs are able to meet and network as well as share their experiences.
These initiatives have had an impact of fostering a vibrant network of SMEs across the country providing them with a platform for connection and knowledge exchange.