Moniepoint, a major African Fintech platform has created Working financial Loans aimed at assisting merchants in resolving financial difficulties and keeping their businesses operational and growing.
The Working Capital Loans product provides companies with a line of credit that is proportional to the amount of capital (or stake) they have invested in the company.
These loans are considered to be of the short- to medium-term variety, with terms ranging from seven to one hundred and twenty days and being easily, and in some cases automatically, renewable.
Any merchant who operates his company through his Moniepoint account will have the ability to apply for and gain access to a line of credit that is proportional to the amount of business that is processed through the Moniepoint account.
Read also: SeamlessHR partners with Moniepoint to transform payroll management in Nigeria
Why is this so important
According to many reports, access to finance continues to be one of the most significant challenges that African small businesses must contend with, which makes it more likely for them to be unable to invest in and expand their operations.
These companies are unable to replenish their inventory and therefore cannot scale as they should since they do not have access to sufficient working capital loans.
The new product gives businesses access to a revolving credit facility, which they can use for purchasing additional inventory and short-term working capital for smooth business operations. This new product solves two major problems for businesses: providing them with convenient access to affordable credit whenever they require it, as well as providing them with convenient access to the credit itself.
Remarks from the executives of business loans
Vice President of Business Loans Tobi Amira talked about the start and said: “We are conscious of the fact that MSMEs are the backbone of African economies and we are always looking for new ways to help African businesses have access to solutions and tools that accelerate their growth.
As part of our commitment to partnering with our merchants to help them grow, we are willing to provide a percentage capital contribution as a line of credit for the daily running of our partners’ businesses. As at the end of June, we had disbursed $3.3million, with a gross loan portfolio value of $2.4 million.”
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About Moniepoint
Moniepoint Inc. is a financial technology firm that was established in 2015 by Tosin Eniolorunda and Felix Ike. The company’s primary mission is to offer various financial solutions to companies.
By granting small and medium-sized enterprises (SMEs) access to banking services, Moniepoint has developed a one-of-a-kind business model with the dual goals of promoting financial inclusion and improving people’s standard of living.
Moniepoint imposes a fee of only 0.5% on withdrawals of up to N20,000 when the total amount is less than that. Moniepoint imposes a standard fee of N100 on all transactions that are greater than N20,000. The cost of sending money through Moniepoint is always the same, at a fixed rate of N20.
Both OPay PoS and Moniepoint PoS are extremely straightforward to obtain, and both incur the same 0.5% fee for each transaction that is subject to a ceiling of 100 Naira. In terms of both customer service and long-term reliability, Moniepoint is just marginally superior to Opay.
Out of a total of 1.5 million POS agents in the country, the financial technology company has authority over 563,262 of them. Another agency banking powerhouse, MoniePoint, has 303,946 point-of-sale (POS) agents located all over the United States. This gives them the second-largest network in the industry.
After the deployment of the latest POS app update, which was given the version number 1.3, the Moniepoint POS terminal has become one of the most secure POS terminals that are currently available in Nigeria.