Enabling SME’s to Access formal Finance. By Sam Omukoko Managing Director Metropol Corporation Limited. In the beginning….Baseline Survey. A Survey carried out in 1999 in Kenya by : USAID GOK K-Rep
By Sam Omukoko
Metropol Corporation Limited.
This is what they said…………
They are unable to access long term funding.
Most support is short term.
High Cost of Capital.
Interest rate charged is too high.
Stringent Appraisal Mechanisms.
Too many documents required leading to lengthy waiting periods and stringent terms.
Lenders don’t understand their businesses.
Lenders emphasize too much on collateral and never analyze their business models.
Lack of capacity.
SME’s lack the capacity to provide complicated business plans and cash flow analyses.
The entire project took 18 Months….. From 2004 to 2006.
Involved a lot of shuttling between Nairobi. Kampala and Dar es salaam.
The central hypothesis of the project was that SME businesses are largely owner managed
and their success depends on his character and business acumen.
Sample size: 88 Customers.
Period : 2010- 2011
Sample size: 74
Total Customers :504
Period 2010- 2011.
To Develop the market through the Proactive Model.
Partner &Membership Program.
Membership Program :
SMEBS Credit Score
SMEBS Tier Level
SMEBS Quantitative data
Data Composition &
SMEBS Report content
SMEBS Costs & Fees
SMEBS Qualitative data
SMEBS Site Verification data + MCRB Alternative data*
Basic KYC and MCRB SME bureau credit report inquiry data
Typical SME Size#
Bronze– SMEBS credit score range 0 to 500
Basic contact information [sufficient to pass KYC and to make an MCRB Report inquiry]
Silver – SMEBS credit score range 550 to 650
Site Verification Data. This includes All the 17 predictive factors that were established in the Regression Analysis.
*NNN = score cut-off point(s)
Gold – SMEBS credit score range 650 to 750
Platinum – SMEBS credit score over 750