Need Cash to Get Stock or Fuel Today? Use This 0% Interest Working Capital Hack!

But did you know you can use this overdraft service to finance your business interest-free? Many MESHERs are taking advantage of this, and you too, can.

So how do you go about it?

Let’s find out.

DISCLAIMER: never take a loan for which you do not have a solid play to repay.

This whole thing is based on the fact that you can avoid paying interest on a Fuliza overdraft if you fully repay the loan before midnight. That is, ukifuliza morning then ulipe the entire loan before midnight, you don’t pay interest. Cheki 12 PROFITABLE HUSTLES MESHE...

Here’s how it works:

Let’s say you hawk fast-moving items like fruits, towels, paintings, etc, na hauna pesa ya stock. From your experience, you know you always make sales at the end of the day. What you do is, unafuliza the amount you need to stock up for the day, unaingia soko unashika stock, unauza, then repay the loan before midnight.

Hii hack uwork kwa other businesses pia. For instance, let’s say we ni driver wa Uber ama Boda na hauna pesa ya fuel for the day. Or maybe you’re a knitter, and you know you can make and sell a bag by the end of the day. Customer ameplace order but you’ve got no cash to buy the yarn. In both cases, you can Fuliza, sort yourself out, and repay within the interest-free window.

As long as you repay before the interest kicks in, this is one of the cheapest one-day working capital loans out there. The best part? You don't have to go through a lengthy application process as you would with a conventional loan. No paperwork is involved either!

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You’ve got two options when it comes to using Fuliza as an interest-free one-day business loan: You can use your personal Fuliza limit or Fuliza ya Biashara. Both options have an interest-free window, but kuna a few differences you need to keep in mind.

Here are the deets:

This overdraft service ukua available kwa watu wamekua na Safaricom line iko active for 6 months or more. Limit yako ugrow based on your transaction history and repayment behavior (i.e., whether unalipa on time).

Ukifuliza, Safaricom ukata a one-off access fee of 1% of the borrowed amount. Kuna excise duty ya 20% of the access fee, pia. So for a loan of 2k, access fee itakua 20 bob (1% of 2000) na excise duty itakua 4 bob (20% of 20). These fees aren’t part of the interest, so you can’t avoid them by repaying the loan within the interest-free window.

It’s also worth noting that ukifuliza Ksh. 1000 or less, the interest-free window is longer: 3 days. Speaking of interest, Fuliza doesn’t charge “interest” per se. Instead, they charge what’s known as a maintenance fee. The maintenance fee is charged daily and starts adding up after the interest-free window.

Here’s a complete breakdown of the daily maintenance fee for various loan amounts:

• KES 1 -100: 0.00

• KES 101 - 500: Free for first 3 days KES 2.50 after

• KES 501 - 1,000: Free for first 3 days KES 5.00 after

• KES 1,001 - 1,500: KES 18 per day

• KES 1,501 - 2,500: KES 20 per day

• KES 2,501 - 70,000: KES 25 per day

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This is an overdraft service designed for small and medium-sized enterprises (SMEs). To access it, lazima ukue na M-Pesa Business Till account imekua active for six months or longer. And as with conventional Fuliza, limit yako itagrow based on transaction history na repayment behavior.

The overdraft kicks in when making transactions from your Lipa Na Mpesa Business Till. You can use it to:

• Send money directly to an individual’s Mpesa account

• Make payments to other Till or Paybill numbers

• Withdraw cash at an agent

Kutumia Fuliza ya Biashara ni ka tu kufuliza ya kawaida: you key in the figure you want to send, accept the overdraft, then Safaricom wanarecover pesa ikiingia kwa account yako. The difference is that when sending or withdrawing money, pesa inatoka kwa Till (instead of your personal Mpesa account). Similarly, the overdraft is recovered from incoming payments to your business Till account–not your personal Mpesa account.

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But unlike conventional Fuliza, Fuliza ya Biashara loans have a longer interest-free window of 24 hours. The one-off access fee is 2%, and a daily maintenance fee is charged based on the amount:

• KES 1 - 999: KES 0

• KES 1,000 - 2,499: KES 12

• KES 2,500 - 5,000: KES 30

• KES 5,001 - 15,000: KES 50

• KES 15,001 - 35,000: KES 150

• KES 35,001 - 70,000: KES 200

• KES 70,001 - 100,000: KES 250

• KES 100,001 - 400,000: KES 250

If you’re not sure you can sell and repay the loan within the interest-free window, using Fuliza as a one-day working capital loan might not be for you. That’s because once those daily maintenance fees kick in, they’ll start eating into the profits you’ll have made from the borrowed capital. If that goes on long enough, the whole thing may no longer be worthwhile.

Worst-case scenario, you might end up defaulting, which can land you in CRB– not to mention losing access to one of the cheapest one-day business loans in Kenya.

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