EDITOR'S NOTE: This article is a part of our Money254 Partner Series and is produced in partnership with Avenews Kenya. For more on Money254’s editorial policy, read here.  

Agriculture provides livelihoods to over 40% of households. Yet, many agribusinesses are stuck in a frustrating cycle of uncertain and insufficient funding, unable to grow their operations.

The challenges include unpredictable markets, cash flow problems, and limited financing options. Accessing traditional loans feels like a burden, with endless paperwork, rigid terms, and high interest rates.

Many of the problems agribusinesses face are as a result of their seasonal nature and the fact that the forces of demand and supply are highly fluctuational. 

Why Flexible Funding is Vital for Agribusiness Growth

Imagine a supplier who sells cereals to a nearby high school. They constantly grapple with cash shortages when demand is high, missing out on potential profits because they can't buy stock in time.

With flexible financing, this supplier would have greater freedom to: 

• Stock up on supplies when prices are low and ramp up production during demand surges.
• Keep supplier relationships intact by paying on time.
• Improve cash flow management

Flexible financing is a lifeline to agribusinesses in Kenya where traditional loans often fall short due to their rigid terms.

One such financing product that has drawn our attention is the Agri Credit Line by Avenews Kenya. In the next section, Money254 takes a closer look at what this product offers and how it could fit the needs of agribusiness owners navigating Kenya’s unpredictable market.

Avenews’ Agri Credit Line

The Agri-Credit Line is a funding option designed to provide a unique option for small and medium-sized agribusiness - its proposition is an ongoing access to funds for agribusinesses - without the need for repeated applications. So you won’t have to worry about cash flow issues ever again.

Key Features of Avenews' Agri Credit Line

1. Quick Access to Funds

Once approved, funds are available immediately. 

2. Recurring Credit With Ksh100k+ Limit

Starting from Ksh100,000 and above, the Agri Credit Line provides businesses with recurring financial support, which can help manage seasonal fluctuations typical of agribusinesses.

3. Flexible Repayment Terms

You can choose repayment terms ranging from 1 to 3 months depending on your business's cash flow cycle.

4. Digital, Fully Online Platform

The Avenews platform allows you to apply and receive funds through a fully digitised process.

5. No Processing or Application Fees

Avenews doesn't charge processing or application fees, making it a more affordable option for agribusiness owners. 

Is Avenews Right for Your Business? 

Your agri-business is eligible for financing through the Agri Credit Line if you operate an agribusiness such as agrovets, millers, processors, aggregators, and manufacturers. 

Avenews does not provide financing for farming operations, smallholder farms, or businesses outside the agriculture sector. See if you qualify here: 

Why Choose Avenews’ Agri Credit Line?

Here's why you may want to use Avenews’ Agri Credit Line to grow your agribusiness: 

1. Immediate Capital Injection: You get fast access to funds, for example, to buy more stock, secure raw materials, or take advantage of bulk discounts. 
2. Pay For What You Use: You’re only charged for the amount you withdraw, not your approved credit limit. For example, if you have Ksh150,000 available and withdraw Ksh30,000, you only pay a markup on the Ksh30,000.
3. Increase Credit Line Over Time: As you borrow and repay, you build a credit history with Avenews and with strong business performance, your amount limit may be increased. 
4. Growth Opportunities: Whether you're looking to get into new markets or expand your existing service, the additional capital from Avenews' Agri Credit Line gives you the ability to seize growth opportunities. 
5. Improve Cash Flow Management: The Agri Credit Line helps you align your cash flow with your business’s specific needs and market demand, allowing you to navigate slow seasons and capitalise during high-demand periods.
6. No Bureaucracy: Avenews’ Agri Credit Line offers a relatively quick, digital  experience. 

Recurring Credit vs. Traditional Loans

• Faster Access
  Recurring credit offers faster approval and disbursement after the initial credit line is set up, unlike traditional loans that can take weeks to process.
• Lower or No Collateral
  Traditional loans often require collateral, which can be a barrier for small or medium-sized businesses. Recurring credit, however, is more accessible, typically requiring less or no collateral.

• Hidden Fees

Traditional loans may come with multiple and complicated fees which often increase the cost of credit, even when the advertised interest rate seems low. They include processing fees, legal fees, insurance, among others. 

The Flexibility of Recurring Credit

1. No Need to Reapply: Once approved, you can borrow as little or as much as you need without making a fresh application

2. Faster Decision-Making: you can make quicker financial decisions when opportunities arise. 

3. No Prepayment Penalties: Unlike traditional loans, recurring credit does not penalise you for paying off your balance early.

4. Higher Control: Since you decide how much to draw, recurring credit offers a higher degree of control - you can borrow exactly what you need. 

5. Grow Your Credit Limit: Responsible management of a recurring credit line strengthens your credit profile, increases your credit limit, opening the door for bigger opportunities. 

What You Need to Get Approved for the Avenews Agri Credit Line

• Your business must be have been active in the agribusiness sector for at least 12 months. See if your agribusiness qualifies here
• 12 months of M-PESA and bank statements 
• Monthly sales of at least Ksh300,000.
• Your business must be registered or has a valid annual county permit for your business premises.
• Your business must have a physical location e.g a shop or warehouse

Step-by-Step Process for Applying for the Agri Credit Line

The Avenews application process takes approximately 48 hours, which is comparatively fast based on other funding options we have reviewed in the Kenyan market. 

Step 1 – Application

Complete the online form in just 4 minutes. 

Step 2 – Onboarding

Once your application is accepted, you'll get a call from Avenews’ onboarding agent who will guide you on the submission of additional documents, including your bank and M-PESA statements, as well as business registration certificates. 

Step 3 – Business Review

Avenews will then conduct a review of your agribusiness. Once your application is approved, you’ll receive an official financing offer within 24 hours. In case of a decline, Avenews will explain the reasons and suggest steps to improve your eligibility for future applications.

Step 4 – Activation

Upon approval, you’ll sign the agreement on the Avenews mobile app. Once activated, you can request funds and access them within minutes. 

Looking to boost your agribusiness without the hassle of traditional loans? Discover how Avenews’ Agri Credit Line can grow with you here.