Kenyans online sources of the most trusted and best blogs and articles about busienss.

With the ever-growing digital revolution, financial services have moved far beyond traditional banking to include mobile money and credit facilities. One such service that's been transforming the business landscape in Kenya is Fuliza ya Biashara. Whether you're a small business owner or running a large enterprise, understanding Fuliza ya Biashara could be a game changer for your operations.

What is Fuliza ya Biashara?​

Fuliza ya Biashara is a unique credit facility offered by Safaricom in partnership with the Commercial Bank of Africa. Essentially, it allows businesses registered on the M-PESA platform (excluding Pochi) to complete transactions even when they have insufficient funds in their M-PESA Business Till. This means you can pay customers, withdraw to an M-PESA agent, pay bills, and more even when you're running low on cash.

How to Activate Fuliza ya Biashara​

Before you can reap the benefits of this service, you need to activate it. To do this, you can follow the steps below:

Using the USSD Code​

  1. Dial *234# from your phone.
  2. Select 'M-PESA Business Till'.
  3. Input your HO/Store Number.
  4. Choose 'Business loans' then 'Fuliza ya Biashara.'
  5. Click 'Join Now' and accept the Terms & Conditions.
  6. Enter your Operator ID and PIN, then select 'accept.'
  7. Your overdraft limit will appear.
  8. Select 'Transact' to use your limit.

Using the Mpesa App​

  1. Install the Mpesa Business App from Google Play Store.
  2. Open the app and choose “Transact”.
  3. Select “Fuliza ya Biashara” and agree to the terms.
  4. Your Fuliza limit will appear.
  5. Follow the prompts to finish your transactions.

How Does Fuliza ya Biashara Work?​

Once activated, Fuliza ya Biashara assigns a limit to your business account based on your financial transaction history and performance. This limit can increase or decrease depending on your repayment and financial performance.

The service charges a 2% daily fee for up to 29 days and a daily maintenance fee ranging from KSh12 to KSh250 based on the amount withdrawn. Repayments are made automatically from collections made to the till every 30 minutes.

Fuliza Biashara Charges and Tariffs​

The Fuliza Biashara fee structure includes a 2% access fee on your Fuliza outstanding balance along with daily maintenance fees as follows:

Band KShDaily Maintenance FeesAccess Fee for every Disbursement
1 – 99902%
0 -2,499122%
2,500 – 5,000302%
5,001 – 15,000502%
15,001 – 35,0001502%
70,001 – 100,0002502%

Increase Your Fuliza ya Biashara Loan Limit: Practical Strategy​

To increase your Fuliza ya Biashara limit, Safaricom recommends more frequent use of Lipa na M-PESA for payments. The more customers transact using this service, the higher their transaction limit will become.

Wrapping Up​

Biashara is an innovative solution that offers businesses the flexibility to manage their financial operations more efficiently. It provides a safety net that allows you to continue transactions even when funds are insufficient, ensuring your business operations aren't disrupted.

However, like any credit facility, it's important to use Fuliza ya Biashara responsibly. Always strive to repay your loans on time to maintain a healthy credit limit and avoid being listed on the Credit Reference Bureau (CRB). Also, remember that the service comes with fees, so factor these costs into your business financial planning.

As a business owner, it's crucial to stay on top of all the financial tools available to you. With the right knowledge and responsible usage, Fuliza ya Biashara can be a key tool in your business's growth and stability. So whether you're just starting out or have been in business for a while, consider how Fuliza ya Biashara could support your business's financial health and growth.

Remember, in the world of business, knowledge is power. The more you understand about the financial tools at your disposal, the better positioned you'll be to make decisions that drive your business forward. So, keep learning, keep growing, and keep pushing your business towards success.