Equity Bank has unveiled business financing with the launch of Eazzy Stock Financing, a cutting-edge credit facility designed to empower small and medium scale enterprises (SMEs). The innovative product offers up to sh5 billion in credit, allowing businesses to unlock the value of their goods and access crucial capital for growth and expansion.
Eazzy Stock Financing, also known as inventory financing, presents businesses with convenient and flexible financing options. It enables entrepreneurs to borrow working capital against their existing stock, providing a lifeline for enterprises seeking financial support. With this facility, customers can borrow between sh8 million and sh5 billion, with repayment tied to the sale of their stock.
Anthony Kituuka, the Managing Director of Equity Bank, unveiled the product during a recent event held at the Sheraton Kampala Hotel. In his address, Kituuka emphasized that Eazzy Stock Financing caters specifically to the needs of entrepreneurs, particularly SMEs and larger manufacturers across various sectors.
He highlighted the advantages of the product, stating, “With this innovative financing solution, businesses can leverage their inventory as collateral to secure loans, eliminating the need for traditional collateral or personal guarantees.” This approach ensures that businesses can access their working capital while minimizing financial risks. Kituuka further stated that the product addresses common challenges faced by businesses, such as cash flow management, seasonal demands, and inventory optimization.
Moreover, Eazzy Stock Financing is expected to empower businesses to handle operational expenses, invest in growth initiatives, and seize emerging market opportunities. Kituuka revealed that the product was developed in response to the COVID-19 pandemic, aiming to provide better support for business recovery.
Paul Claude Sine, a director at Equity, explained that Eazzy Stock Financing targets agents, distributors, stockists, and retailers who sell products or services from an anchor or manufacturer. “It allows these categories to access funds for working capital conveniently, as and when required,” Sine added. The product equips customers with a powerful tool to unlock their inventory’s potential and achieve their business objectives. It offers increased cash flow, flexible repayment options, and a streamlined application process.
Sine also commented on the recent budget announcement for the 2023/24 financial year, which relies on domestic revenue, internal borrowing, interest payments, local government revenue, and external project support. He stressed the importance of financing solutions, like Eazzy Stock Financing, in supporting business growth and resilience within the private sector, particularly for SMEs.
To access the facility, stockists or retailers only need to fill out a one-off loan application form and complete the rest of the borrowing process using their mobile phones. Barbara Among, Equity’s Communications Manager, clarified that the commission charged is based on earned margins, making the product inclusive for entrepreneurs of the Muslim faith.
Equity Bank Uganda boasts an extensive network, comprising 50 branches, 8,640 Equi Duuka agents, over 2000 Merchants, and 52 ATMs spread across the country. The bank serves nearly 2 million customers. As a subsidiary of Equity Group Holdings Plc, a financial services company listed on the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange, Equity Bank Uganda contributes to the group’s widespread success. With assets worth $12 billion, a market capitalization of $2 billion, and a customer base exceeding 15 million, Equity Bank stands as the largest bank in the region. It also operates banking subsidiaries in Kenya, Rwanda, Tanzania, the Democratic Republic of Congo, and South Sudan.
The introduction of Eazzy Stock Financing demonstrates Equity Bank’s commitment to driving economic growth, supporting SMEs, and fostering entrepreneurship in Uganda and beyond. By providing innovative financial solutions tailored to the specific needs of businesses, Equity Bank continues to empower the private sector, paving the way for long-term success and economic prosperity.
