Running a business involves managing cash flow, and sometimes, even the most well-prepared businesses may face short-term gaps. Whether you’re dealing with unexpected supplier payments or need to cover daily operational costs, Fuliza Biashara offers a convenient solution. This overdraft service from Safaricom, in partnership with KCB Bank, allows Kenyan businesses to complete transactions even when their tills are low, ensuring a smooth flow of operations.
In this comprehensive guide, we’ll explore what Fuliza Biashara is, how it works, its loan limits, charges, and how businesses can benefit from this service to maintain liquidity.
How Fuliza Biashara Works for Kenyan Businesses
Fuliza Biashara is designed for micro, small, and medium enterprises (MSMEs) that process cashless payments through the Lipa Na M-PESA Buy Goods till. If a business faces a situation where the till has insufficient funds, Fuliza Biashara allows them to access an overdraft to cover the shortfall.
The overdraft is automatically repaid once more funds are added to the till. With this service, businesses can access funds as needed, without worrying about delays or interruption in payments.
You can draw multiple overdrafts in a single day, provided you stay within your credit limit. The credit limit is determined based on how much money flows through your till and how frequently you use the service.
Loan Limits and Charges in Fuliza Biashara
Fuliza Biashara offers businesses flexibility, with loan limits ranging from KSh 1,000 to KSh 400,000, depending on the usage and repayment history. Here’s a breakdown of the charges:
- Grace Period: After you use the overdraft, you are given a 48-hour grace period with no charges.
- Access Fee: A 2% access fee applies to each disbursement after the grace period.
- Daily Maintenance Fee: This fee ranges from KSh 12 to KSh 250 depending on the amount borrowed.
The minimum withdrawal amount is $1 USD. Businesses should also be aware that if the balance is not repaid within 30 days, access to Fuliza Biashara will be suspended, and a 91-day repayment period is provided. If the loan remains unpaid beyond this period, the business could be listed with the Credit Reference Bureau (CRB).
Requirements to Access Fuliza Biashara
To be eligible for Fuliza Biashara, businesses must meet the following requirements:
- Registered Lipa Na M-PESA Buy Goods Till: You must have an active Lipa Na M-PESA Buy Goods till registered under the business name.
- Active Usage for at Least Six Months: Your M-Pesa Business Till should have been in use for a minimum of six months, with a history of transactions.
- Good Repayment Record: Maintaining a positive repayment history is crucial to accessing the service and increasing your limits.
Fuliza Biashara is only available for business tills and not for personal M-Pesa lines or Pochi la Biashara wallets.
How to Activate Fuliza Biashara
Activating Fuliza Biashara is a simple process that can be done in two ways:
- M-PESA Business App – This method is ideal for smartphone users and involves a digital process to activate the service.
- *USSD via 234# – This option is suitable for feature phone users or those who prefer menu-based access.
Both methods are quick, require no paperwork, and the approval process is almost instant.
Transactions You Can Do with Fuliza Biashara
Fuliza Biashara can be used for a wide range of business transactions, including:
- Paying other Lipa Na M-PESA tills or PayBill numbers.
- Sending money to suppliers or customers.
- Paying bills and utilities.
- Withdrawing cash to nominated numbers or at M-PESA agents.
This overdraft service is strictly for business use and cannot be used for personal purchases.
Difference Between Fuliza Biashara and Taasi
Many people confuse Fuliza Biashara with Taasi, but the two products work differently:
- Fuliza Biashara acts like an overdraft: You borrow only what you need to complete a payment, and you can use it multiple times within your limit.
- Taasi, on the other hand, is a short-term loan: It provides a fixed amount in one lump sum, with a repayment period of between 7 and 30 days. Taasi has two versions: Taasi Till for Lipa Na M-PESA users and Taasi Pochi for Pochi la Biashara users.
Is Fuliza Biashara on Pochi La Biashara?
No, Fuliza Biashara is not available on Pochi la Biashara. Businesses using Pochi can only access credit through Taasi Pochi.
What is Fuliza Biashara? FAQs
Here are answers to some common questions about Fuliza Biashara:
Can you opt out?
Yes, you can opt out of Fuliza Biashara through the M-PESA Business App or by dialing *234#.
Does it affect your personal M-PESA account?
No, Fuliza Biashara is linked only to your business till and does not affect your personal M-PESA account.
Is there a limit to daily use?
No, you can use Fuliza Biashara multiple times a day as long as you stay within your credit limit.
Will your limit grow over time?
Yes, consistent transactions and timely repayments can increase your credit limit.
Can new businesses use it?
No, your M-PESA business till must have been active for at least six months to be eligible for Fuliza Biashara.
What happens if you do not repay in 91 days?
If the loan is not repaid within 91 days, your business will be listed with the CRB, which may affect your ability to obtain credit in the future.
Final Word
Fuliza Biashara is an excellent solution for Kenyan businesses facing short-term cash flow issues. It’s designed to keep businesses running smoothly by offering quick access to funds during critical moments. By understanding the requirements, loan limits, and repayment conditions, businesses can make informed decisions about using this overdraft service.
With its simple activation process, transparent charges, and practical use cases, Fuliza Biashara is a valuable tool for businesses that need to keep operations going without the stress of waiting for payments to clear. Ensure you meet the eligibility requirements, maintain good repayment practices, and use the service wisely to maximize its benefits.
