Empowering SMEs Through Invoice Factoring

In the quest to develop the nation through major infrastructure projects such as roads, the SGR, port expansion, and railway refurbishment, the government of Kenya has spent trillions of shillings. In order to finance this spending, borrowing has been made both in Local and International markets. The unintended consequence, however, is crowding out of Small and Medium Enterprises from the formal credit environment. It is more profitable for banks and other financial institutions to fund the government than extend credit to SMEs. Even when SMEs are funded, in many instances, funders insist on land, mortgages or fixed collateral to secure the funding. The net result is the unavailability of self-fund by SMEs who provide the largest share of employment and income in the country.

With this in mind, MOMENTUM, founded in 2017, has evolved its funding to target Small and Medium Enterprises. Momentum Credit is able to fund SMEs across the country through invoice financing/discounting. With this product, SMEs are able to get fast invoice financing where the invoice is the only ‘security’. Invoice financing in Kenya is typically restricted to highly capitalized and high turnover borrowers. In reality these are ‘premium’ customers enjoying corporate banking facilities. By relying on the credit quality of the end invoiced customer, Momentum Credit’s Invoice Factoring allows for day one start-ups to have access to working capita

Momentum Credit is also able to offer supply chain financing options by leveraging on the SME’s vehicles as adequate and reliable security to cover supplier financing requirements. While this supply chain finance product is exclusive to Momentum Credit customers who have previously accessed invoice discounting, we are rolling this program across the Kenya’s high growth value chains. We support suppliers in the auto, logistics, oil, manufacturing, advertising and insurance industries. This means that all suppliers in these value chains are automatically eligible to invoice discounting and supplier financing products based on their previous performance history only.

MOMENTUM is about expanding the possibilities of our customers and through our invoice factoring and supply financing products, we are the reliable funding partners to SMEs. We have 97% of our customers funded through these products, month on month, and over time we have witnessed their growth – A true testament to our promise- EXPANDING YOUR POSSIBILITIES.

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