InclusiveFinancing
Access to capital remains one of the fastest growing barriers for micro- and small-scale entrepreneurs in low-income African communities. Traditional banks often require collateral, have high interest rates, or complex paperwork that early-stage businesses can't meet.
At Somo, we provide innovative financing pathways for underbanked entrepreneurs powered by an alternative credit scoring system that provides a comprehensive assessment of creditworthiness.
Investment Overview
Business Financed
821
+$126 than last month
Funds Invested
$3,087,348
-$126 than last month
Non Performing Loans
74%
-2% than last month
Loans Disbursed
$485,923
+$21 than last month
Total Fund Size
$53,789,567
+$64 than last month
Annual Revenue growth
58%
+2% than last month
Impact of Inclusive Financing
We believe that through empowering locally-rooted small entrepreneurs, we can unlock sustainable growth and job opportunities. We have developed innovative financing pathways for underbanked entrepreneurs powered by data-driven alternative credit scoring.
These are some of the inspiring stories of entrepreneurs who have transformed their communities through innovation and determination.
How It Works
Through Somo's tier funds, we provide flexible, low-interest loans to entrepreneurs in East Africa. These loans feature:
Alternative credit scoring:
Decisions based on social impact and financial data not traditional collateral. Somo's data-driven tools help entrepreneurs mitigate risk in their business and access financing. The automated weighted score provides a comprehensive view of an entrepreneur's business performance.
Social lending model:
Utilizing a group lending model, Somo entrepreneurs co-guarantee each other as an alternative to collateral, addressing the systemic exclusion of low-income entrepreneurs from traditional lending.
Non-commercial, tailored terms:
Impact-driven, non-profit rates. Aligned to each business model.
- Term: 6 - 36 Months
- Grace period: 1 - 3 Months
- Interest Rate: Flat fee of 5% - 10%
