Kopo Kopo has launched its new merchant cash advance service called “Grow.” This cash advances service is much better than any other loan because, the merchant cash advance comes with a single, upfront fee meaning that there is no interest tied to the amount borrowed. KopoKopo will calculate that fee based on how long a customer has been with KopoKopo and how actively they have used their services.
Grow cash advances are disbursed in minutes and do not require any personal guarantee and come with no late fees or penalties.
“In our years of doing business, we’ve seen even our best customers struggle to access capital for their businesses,” according to Kenya CEO, Francis Mugane. “Given our mission to help businesses grow and prosper, solving this problem with Grow was a logical next step – and it’s only one of many steps to come.”
The basic requirement for businesses to become eligible for “Grow” is accepting electronic payments via Kopo Kopo for three months. The more electronic payments a business accepts via Kopo Kopo, the more cash they are eligible to receive at a lower fee. Once eligible, a business owner chooses how much they want to receive and what percentage of daily sales should be deducted via Kopo Kopo to repay the cash advance. The business owner then agrees to a simple fixed fee, and funds are disbursed to their Kopo Kopo account within minutes.
“We believe electronic payment acceptance is the first step on the path to modern, digital commerce,” said Mugane. “We see Grow as an opportunity to help businesses access capital while simultaneously encouraging them to start moving away from cash.”
Grow is ideal for businesses looking to replenish stock, refurbish their premises, or launch a new business line. Since repayments are based on electronic sales, Grow perfectly aligns with a business’s cash flow: Kopo Kopo deducts a larger amount when sales are high, a smaller amount when sales are low, and no amount when there are no sales.
In regards to how they get the money for this service, Mugane said: “We have partnered with a regulated finance company called AFB to underwrite Grow advances. Under this agreement, Kopo Kopo is responsible for sourcing advances and automating collections.”
To learn more about Grow, text the word “GROW” to 20556, call 0702 000 222, or visit www.grow.co.ke. You can also follow the conversation on Twitter via the hashtag #GrowWithUs.
