Kenya - Startup under 3 years old

Décrivez votre projet en quelques mots

Lend Rate is a crowd-financing platform that enables small businesses to obtain LPO financing for a transaction at a negotiated rate of return. At Lend Rate we believe that it takes a village to build a business.

01.01 Décrivez votre startup en détail

Lend Rate offers LPO financing to a small business at a cost similar to commercial banks and lower than micro-finance banks or alternate and informal lenders such as digital lenders, shylocks and currently SACCOs. Individuals also earn more on their savings through lending to the small businesses. Lend Rate is creating an ecosystem that will transform how investing by individuals and financing of SMEs will be done in Africa in the future. We do not require small businesses to have collateral for the transactions that are financed and we allow for individuals to choose which business they want to finance at the rate of return offered and the duration that suits them. The rate of return is also favorable to the SME as the business negotiates for a rate between 2%-10% per month depending on the length of the transaction and the profit margin the business is making on the transaction.

01.02 Quel est le problème principal que vous essayez de résoudre ?

Most small businesses in Africa cannot access credit from formal financial institutions due to a lack of collateral and resort to borrowing from friends and family or informal lenders such as shy-locks to meet their working capital requirements which is provided at extortive rates. This tends to get entrepreneurs stuck in a cycle searching for affordable funds instead of building their sales channels. Additionally, people will be willing to help family and friends but do not have enough resources to do so. Lend Rate pools financing from the community to help entrepreneurs grow their business transaction by transaction.

01.03 Dites-nous quels sont les principaux avantages et/ou bénéfices de l'utilisation du produit/service fourni par votre startup (au moins 3).

Marks rate brings together both small businesses and savers in an economy. The small businesses have been locked out of accessing affordable credit from the formal financial institutions and the individual savers are looking to grow their savings through an alternate digital channel. Marks Rate is focused on formalising the informal lending sector that revolves around the family and friends network thus allowing the economy to expand through each completed transaction or opportunity that a small business is presented with. Individual savers will have a viable alternative that will reduce their exposure on lending to small businesses by fully understanding the need for financing and how repayment will be carried out as opposed to the current situation where small businesses borrow to meet their monthly expenditure.

01.04 Veuillez décrire précisément à qui s'adresse le produit/service de votre startup. Quels sont les bénéficiaires visés ?

Lend Rate is focused on working with small businesses who are in need of LPO financing. These businesses are typically startups or have been in operation for a period of time. They are formally registered as companies and have a history of the service or product that they offer in supplying or executing. Their owners are experienced in a specific field or have gained experience over a period of time. In addition, we are building the ecosystem with individuals with savings and these include both young adults and families who are looking to grow their savings and support friends and family members within those businesses.

01.05 Quand votre entreprise a-t-elle été créée ?

01/06/2024

01.06 Vendez-vous déjà votre produit/service ?

Non

01.07 Combien y a-t-il de propriétaires de votre entreprise en plus de vous ?

3

01.08 Parmi les autres propriétaires, combien sont des femmes ?

0

01.09 Veuillez décrire le profil des autres propriétaires de votre startup (compétences, expérience, etc.).

Lend Rate was founded by Lornah Mutegi, Steve Mwenda and Robert Keingati. I currently work as a business advisory consultant at Open Capital Ltd for the last five years and have worked with small businesses across Africa revolving around their financing requirements and business operations. Steve has an extensive banking background and previously worked at Habib Bank as the financial controller for over 8 years and currently focuses on consulting with small businesses on matching their funding requirements. Robert has a marketing and research background with a focus on government consulting relating to small business development and growth. He is especially interested in identifying funding gaps for small businesses across Africa and how to bridge the chasm between SMEs and operating capital available in the financial landscape.

01.10 Si vous avez un site web, une page sur les médias sociaux (Facebook, Instagram, Linkedin...) ou une application, veuillez fournir le(s) lien(s) ici :

01.11 Quel est le secteur d'activité qui décrit le mieux votre entreprise ?

Services financiers

02.01.01 Ma startup contribue à l'objectif 'Pas de pauvreté'

6

02.01.02 Justification de la contribution de ma startup

Lend Rate addresses a need that directly relates to the well-being of business owners who miss out on opportunities related to a lack of funding. Most of these businesses have employee’s dependent on the survival and thriving of those businesses. Through being able to complete a single transaction leading to other transactions, they are able to support these employees and their families. In addition, we also work with individuals who contribute towards their families directly within urban and rural areas where they support families with direct purchases of food, medicine and general support. Lend Rate offers them an opportunity to grow their savings through supporting small businesses and in return meet their financial demands of their immediate communities.

02.02.01 Ma startup contribue à l'objectif 'Faim Zéro'

3

02.02.02 Justification de la contribution de ma startup

02.03.01 Ma startup contribue à l'objectif 'Bonne Santé et Bien Être'

7 - tout à fait d'accord

02.03.02 Justification de la contribution de ma startup

The challenge of running a small business comes at a cost to most owners and entrepreneurs. The challenge of meeting the business financial requirements leads to stress and anxiety especially when this challenge is not met over a period of time. Lend Rate offers an opportunity for individuals to focus on marketing and relation building for their businesses as opposed to the unending cycle of fundraising and the disappointment that rises from this. Individual savers also have an opportunity to earn additional income that allows them to support their family members through payment of medical insurance, buy additional food where needed and meet their utility requirements.

02.04.01 Ma startup contribue à l'objectif 'Éducation de Qualité'

7 - tout à fait d'accord

02.04.02 Justification de la contribution de ma startup

Lend Rate helps to drive the building of businesses and savings which in return helps to drive earnings and savings of businesses and individuals respectively. Most families are striving to meet the educational requirements of their own children due to the rising cost of living and any additional income earned usually goes towards paying school fees. In some cases, people have held back on sponsorships of needy children due to cut backs on their own budgets. Lend Rate aims to allow for schools to also obtain short term financing based on their school fees cycle similar to LPO financing which focuses on developing transactional models for their financing requirements.

02.05.01 Ma startup contribue à l'objectif 'Égalité entre les Sexes'

7 - tout à fait d'accord

02.05.02 Justification de la contribution de ma startup

Historically women in Africa have faced significant hurdles when trying to raise financing for their businesses. They tend to work more with social groups and family friends when building their businesses. Lend Rate has identified the opportunities for bridging this gap and allowing women to thrive in their efforts at working on their businesses either as individuals or in companies. These opportunities largely lie in breaking through in supply chain financing for larger organizations that also seek to work with women and the youth.

02.06.01 Ma startup contribue à l'objectif 'Eau Propre et Assainissement'

2

02.06.02 Justification de la contribution de ma startup

02.07.01 Ma startup contribue à l'objectif 'Énergie Propre et Abordable'

3

02.07.02 Justification de la contribution de ma startup

02.08.01 Ma startup contribue à l'objectif 'Travail Décent et Croissance Économique'

7 - tout à fait d'accord

02.08.02 Justification de la contribution de ma startup

Decent work and economic growth is the sum of each individual transaction within an economy. Lend Rate identifies that being able to complete a transaction on time and deliver quality is key to the growth of small businesses. Our main focus is on allowing small businesses to achieve this immediate need when required with as little financial friction as possible. Lend Rate also identifies that the opportunities we develop allow for individuals to grow their savings and stimulate additional opportunities for businesses through increased demand at the individual level for different products and services.

02.09.01 Ma startup contribue à l'objectif 'Industrie, Innovation et Infrastructure'

4

02.09.02 Justification de la contribution de ma startup

02.10.01 Ma startup contribue à l'objectif 'Réduction des Inégalités'

7 - tout à fait d'accord

02.10.02 Justification de la contribution de ma startup

Lend Rate has a primary focus on the missing middle of small businesses who are unable to access working capital financing due to collateral requirements. This focus also brings in individuals with savings that these small businesses operate in. The funding formula for small businesses with a direct benefit to individuals that we have developed allows for the circular movement of cash within the community and in addition helps to reduce inequality through building the poor and the middle class financially with each transaction that is completed.

02.11.01 Ma startup contribue à l'objectif 'Villes et Communautés Durables'

4

02.11.02 Justification de la contribution de ma startup

02.12.01 Ma startup contribue à l'objectif 'Consommation et Production Responsables'

4

02.12.02 Justification de la contribution de ma startup

02.13.01 Ma startup contribue à l'objectif 'Lutte contre les Changements Climatiques'

3

02.13.02 Justification de la contribution de ma startup

02.14.01 Ma startup contribue à l'objectif 'Vie Sous-Marine'

2

02.14.02 Justification de la contribution de ma startup

02.15.01 Ma startup contribue à l'objectif 'Vie Terrestre'

2

02.15.02 Justification de la contribution de ma startup

02.16.01 Ma startup contribue à l'objectif 'Paix, Justice et Institutions Efficaces'

2

02.16.02 Justification de la contribution de ma startup

02.17.01 Ma startup contribue à l'objectif 'Parteneriats pour la Réalisation des Objectifs'

4

02.17.02 Justification de la contribution de ma startup

06.01 Un grand nombre de clients utilisent déjà un produit/service très similaire au nôtre.

4

06.02 Notre produit/service représente un type de produit/service entièrement nouveau

2

06.03 Notre produit/service pourrait être décrit comme une nouvelle technologie

6

06.04 Notre produit/service est une amélioration d'un produit ou d'un service existant

6

06.05 Notre produit/service pourrait être décrit comme une extension d'une gamme de produits ou de services

6

06.06 Notre produit/service répond à une demande ou à un besoin qui n'a pas été satisfait par d'autres produits/services.

7 - Tout à fait d'accord

06.07 Notre produit/service est une nouvelle version d'un ancien produit/service

6

06.08 Justification

Lend Rate will offer affordable financing solutions on LPO financing to small businesses with no financial security required and within a shorter period of time as opposed to what is available from the commercial banks and micro-finance institutions. Alternatively, we will also provide an opportunity for the average saver or investor to earn a higher rate of return on their savings or investment funds through financing these small businesses by ensuring that the principal amounts invested are always repaid on time and safeguarded from loss. The village idea can be replicated across different organisations such as Total Kenya and the different suppliers under its ecosystem thus reducing financial friction and helping Total meets its goal of working with women and the youth.

06.09 Analyse compétitive

Our main competitors are commercial banks and micro-finance institutions. They offer the same products i.e. LPO financing that we propose on Lend Rate. They also have other financing options such as overdrafts and term loans that relate to short term and long term financing available to small businesses. In addition, they also offer investment opportunities through call and fixed deposits. These organisations have the advantage of structures in the form of technologically adaptable banking and mobile platforms, wide branch networks and unlimited resources. Their main disadvantage is that they are regulated by the Central Bank and are not as nimble in terms of adopting new innovations.

11.05 Menez-vous des actions au sein de votre communauté pour promouvoir le rôle des femmes entrepreneurs ?