Faster, Smarter Working Capital For Kenyan SMEs By Faulu

For Kenyan SMEs, securing quick funding has always been an uphill battle. Traditional banks demand collateral, pile on paperwork, and take weeks to approve loans—time that small businesses simply don’t have. Faulu Bank is changing the game with its enhanced short-cycle working capital solution, built to address these frustrations head-on.

SMEs are the lifeblood of Kenya’s economy, making up 98% of businesses and contributing 40% of GDP. Yet, many struggle to stay afloat due to cash flow gaps, unpredictable expenses, and the inability to access timely financing. Faulu Bank’s solution cuts through these challenges by offering:

• Instant access to funds through seamless digital platforms like Faulu DigiCash—no lengthy queues or endless paperwork.
• Collateral-free credit for small traders, leveraging transaction history instead of traditional security demands.
• Flexible repayment with 30-day loan terms, giving businesses the breathing room they need without long-term debt traps.

“Why should SMEs wait weeks for a loan approval when their suppliers won’t wait to be paid?” asks Julius Ouma, CEO of Faulu Bank. “We’ve stripped away the barriers that hold small businesses back—no collateral, no bureaucracy, just fast funding when they need it most. This isn’t just about money; it’s about keeping dreams alive and livelihoods running.”

The Faulu DigiCash App exemplifies this agility, offering low-interest loans disbursed in minutes, not days. For a trader restocking inventory or a vendor covering urgent expenses, this speed can mean the difference between staying open or shutting down.

Faulu’s approach stands in stark contrast to traditional banks, where rigid processes often leave SMEs stranded. By focusing on digital-first solutions and real-time credit scoring, Faulu ensures that even the smallest businesses can compete and grow.

This innovation is part of Faulu’s bold vision to become Kenya’s go-to bank for traders, backed by a Ksh 900 million investment from parent company Old Mutual. The message is clear: Faulu isn’t just offering loans—it’s rewriting the rules of SME financing.

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