MyFy: Unsecured Inventory financing
Traditionally, Inventory financing is credit/loan obtained by businesses to pay for products that aren’t intended for immediate sale. It is often used by smaller privately-owned businesses that don't have access to other options like raising money through the stock market or the bond market or even through a bank loan..
Here's how it works;
A "muyilibi" ( small business owner/ hustler) notices that he is running low on stock and capital, so they approach a lender who offers them the money at an ungodly interest rate, a case in point, Ugandan money lenders can go up to 45% interest, then, they'll hound you down 😬.
The loan is usually backed or collaterlized by the inventory or stock you buy using the loan money.
The pros of this are;
It Helps small businesses to deal and cope with increasing customer demand,
There is no need for credit scores or ratings,
New businesses are eligible and can access credit quickly.
The only con I see from the business person's perspective is the higher interest rate they get slapped with.
Banks 😈 generally stay away from offering this type of financing because they don't want to deal with the hustle of selling your "small time" shoes/ clothes/ sucks of posho to recover their money in case you default.
Kati, Unlike Banks and Money lenders, one of Myfy's value proposition is something we call rotational savings and financing, it helps you save with a group of trusted business colleagues (your circle) in a manner similar to that local "kkibina" (village savings group), then at a regular time, you get borderline free circle sourced funds to finance your restocking or business expenses at zero interest.
Find out more here.
We are taking every step of the way with you. 😉