What is Fuliza Biashara? Requirements, terms, and loan limits
Fuliza Biashara is a new overdraft service made for Kenyan businesses that use Lipa Na M-PESA. It allows business owners to complete payments even when their tills don’t have enough funds. The loan limit ranges from Ksh 1,000 to Ksh 400,000. But there’s more to it than just quick top-ups.
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TABLE OF CONTENTS
- Key takeaways
- What is Fuliza Biashara?
- Fuliza Biashara loan limits
- What are the requirements to access Fuliza Biashara?
- How to get a Fuliza Biashara loan
- Which transactions are eligible through Fuliza Biashara?
- Is Fuliza Biashara the same as Taasi?
- Is Fuliza Biashara available on Pochi La Biashara?
- FAQs about Fuliza Biashara
- Final word
Key takeaways
- Fuliza Biashara is an overdraft service for businesses using Lipa Na M-PESA, allowing them to complete transactions even when their tills have insufficient funds.
- Loan limits range from KSh 1,000 to KSh 400,000, with access and repayment terms based on till usage and transaction history.
- Only businesses with a registered Buy Goods till and at least six months of active use are eligible, and the service is not available for Pochi la Biashara users.
- Repayment is automatic, with a 48-hour grace period, followed by daily fees and a 91-day repayment window before potential CRB listing.
What is Fuliza Biashara?
Fuliza Biashara is an overdraft facility built for Kenyan businesses that use the Lipa Na M-PESA platform. Safaricom introduced it in partnership with KCB Bank. The service targets micro, small, and medium enterprises (MSMEs) that accept cashless payments through a Buy Goods till.
How does this work? When a business lacks sufficient funds in its till, business owners can access Fuliza Biashara to top up the required amount instantly. It allows the business to complete payments without interruption and repay the overdraft later.
Fuliza Biashara loan limits
Fuliza Biashara loan limits range from KSh 1,000 to KSh 400,000. The specific amount allocated by Safaricom is based on the frequency and volume of transactions a business makes through its till. You can draw multiple overdrafts so long as the total borrowed amount remains within your assigned limit.
Once the overdraft is charged, a 48-hour grace period is offered. This means that no interest will be charged. After that, a 2% access fee is applied to each disbursement. A daily maintenance fee is also charged, ranging from KSh 12 to KSh 250, depending on the amount borrowed.
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Repayments are automatically attempted every 30 minutes whenever fresh funds are received into the till. However, if the loan isn’t repaid within 30 days, the business is cut off from using the service. You also have to repay the Fuliza Biashara loan within 91 days. After this, the business can be listed with the Credit Reference Bureau (CRB).
What are the requirements to access Fuliza Biashara?
To qualify for Fuliza for businesses, a business must:
- Have a registered Lipa Na M-PESA Buy Goods Till (the service is not available for personal M-PESA lines or Pochi la Biashara wallets).
- Have actively used the M-PESA Business Till for at least six months.
How to get a Fuliza Biashara loan
There are two ways merchants can access Fuliza Biashara. You can
- Activate Fuliza Biashara via the M-PESA Business App: Suitable for smartphone users who want a digital experience.
- Use USSD and dial *234#: Easy access for feature phone users and those who prefer USSD-based menus.
Safaricom has made the application process quick and straightforward. This ensures that people from different backgrounds easily access the service. There is also no paperwork required, and approvals are fast.
Which transactions are eligible through Fuliza Biashara?
Fuliza Biashara can be used for a range of business transactions. These include:
- Paying other business till numbers or PayBill numbers
- Sending money to customers or suppliers
- Settling utility and bill payments
- Withdrawing cash to nominated numbers or at M-PESA agents
Is Fuliza Biashara the same as Taasi?
No. Fuliza Biashara and Taasi are both credit services offered by Safaricom through M-PESA, but they are not the same and serve different needs.
Fuliza Biashara works as an overdraft for Lipa Na M-PESA business tills. Taasi, on the other hand, is a short-term loan product. It requires merchants to apply for a set loan amount, which is given out in one lump sum.
Source: Instagram
There are two versions of Taasi. The first option, Taasi Till, is designed for Lipa Na M-PESA users with limits between KSh 1,500 and KSh 250,000. The second option is Taasi Pochi, which is meant for informal traders using Pochi la Biashara, with loans starting from KSh 1,000.
Unlike Fuliza, Taasi loans have a fixed repayment term. Safaricom requires merchants to take between 7 and 30 days before repaying.
Is Fuliza Biashara available on Pochi La Biashara?
Fuliza Biashara isn’t supported on Pochi la Biashara. Instead, users on that platform can access credit through Taasi Pochi.
FAQs about Fuliza Biashara
- Can you opt out of Fuliza Biashara after enrolling? Yes, you can opt out of Fuliza Biashara by using the M-PESA Business App or by dialling *234# and following the prompts.
- Does Fuliza Biashara affect your personal M-PESA account? No, Fuliza Biashara does not affect your personal M-PESA account because it is linked to your Lipa Na M-PESA business till, not your individual line.
- Is there a limit to how often you can use Fuliza Biashara in a day? There is no limit to how often you can use Fuliza Biashara in a day as long as you stay within your assigned overdraft limit and meet repayment conditions.
- Will your Fuliza Biashara limit increase over time? Yes, your Fuliza Biashara limit may increase over time depending on your transaction frequency, repayment behaviour, and overall till activity.
- Can Fuliza Biashara be used to pay for personal purchases? No, Fuliza Biashara cannot be used for personal purchases because it is designed strictly for business-related transactions through a Buy Goods till.
- Is Fuliza Biashara available to new businesses? No, Fuliza Biashara is not available to new businesses because you must have used your Lipa Na M-PESA till actively for at least six months.
- What happens if you don’t repay Fuliza Biashara within 91 days? If you don’t repay Fuliza Biashara within 91 days, your business may be listed with the Credit Reference Bureau (CRB), which can affect future access to credit.
Final word
Fuliza Biashara offers a reliable financial cushion for Kenyan businesses using Lipa Na M-PESA. The service is well-suited for micro, small, and medium-sized enterprises. It stands out as an innovative and accessible credit solution for managing business cash flow in Kenya’s businesses.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Tuko.co.ke also published an article about M-Pesa Holding Company Limited. It offers insight into the little-known corporate trustee behind Kenya’s leading mobile money platform. The article also breaks down its critical role in safeguarding user funds and explains why Safaricom acquired it from Vodafone for just $1.
Curious about who really owns M-Pesa? Read on to discover how the structure has changed over the years.
Proofreading by Masolo Mabonga, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
