Small entrepreneurs can access tailored financial products that align with their specific requirements after Faulu Bank enhanced its portfolio, following July’s KSh900 million cash injection from parent Old Mutual.
The bank now offers comprehensive trade banking products, including savings and investment facilities, digitally-enabled transactions for SMEs and Insurance solutions to safeguard businesses and personal assets against unforeseen risk.
Faulu Bank’s SME accounts are tailored for growing businesses, allowing for frequent transactions and multiple payments through convenient solutions, including RTGS, cheques, direct debits, EFT and standing order, amongst others. These accounts also provide access to foreign exchange services, business loans and overdraft facilities that align with the unique needs of individual businesses.
Many of these services are accessible via Faulu Bank’s enhanced digital solutions like the DigiCash App, Faulu E-banking and Faulu Host to Host, a platform that allows entrepreneurs to make seamless, real-time, and cost-effective transfers between banks and their clients. All these digital facilities empower customers to bank anytime, anywhere, and on any device, through convenient, secure, and user-friendly channels.
SMEs that bank with Faulu have access to multiple lending products from its Biashara Micro-secured bouquet of secured and unsecured loans with rapid approvals of 48 hours, flexible collateral requirements and adjustable repayment options including 84-month term limits. These products are envisaged to support working capital needs, business expansion, trade finance, project finance, bid and performance bonds, letters of guarantee and import/export finance.
Moreover, Faulu has a specialized saving and lending product for agribusiness entrepreneurs, which targets farmers of grains, milk, tea and other value chains. Under this product, farmers can secure financing to advance their business equivalent to 70% the value of sales from the previous agricultural season. The bank also works with partners like the United Nations Capital Development Fund, Water.org, the World Health Organisation and GIZ, amongst others, in delivering agricultural ecosystem financing products for the acquisition of production resources like irrigation equipment and solar systems. These partnerships are achieved through a de-risking arrangement, which increases the bank’s capacity to lend to many farmers.
To minimise business risks for entrepreneurs, the bank has several insurance products, including insurance premium financing targeting assets and businesses. These products cover different risks including natural calamities like fires and earthquakes as well as man-made issues like robberies and malicious damage.
The Faulu insurance products cover employees, infrastructure, stock, and other business valuables. For example, the Faulu Biashara Flexi Cover protects a company’s employees, while the Contractors All Risk Cover, offers protection against loss or damage to contract works, machinery and plant, as well as third party liability arising from the performance of contracts.
“Small businesses are an important segment of our bank and we are always looking for innovative ways of supporting their growth. With a strengthened capital base, we can now lend more, ensuring that entrepreneurs have everything they need to thrive, ultimately creating more job opportunities for the country’s youth,” said Faulu Bank’s CEO, Julius Ouma.
