Published November 10 2022 • 2 MIN READ

Say hello to Chapa Capital!!

Quick access to flexible loans to grow your business.

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Product Updates
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Gelila Zeru
Project Management Intern
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Say hello to Chapa Capital!!

In the previous articles, we have gone over the hardships MSMEs face. Despite all the benefits that have evolved, there is still a significant gap in establishing an effective development strategy. We are now presenting a solution specifically designed to eliminate the struggles. Chapa capital offers MSMEs the means to expand their businesses even further. With the transaction data that is analyzed throughout the course of the business using Chapa, if a business is eligible for a loan, they can quickly receive an estimation of the amount of loan they can apply for. 

The need for financing services has been growing immensely, partly due to the advancement of technology. In this case, the combination of technology with financial services means that several platforms and applications are being created and improved to make it easier to use financial services, such as applying for online personal loans or business loans. 

Recently, some frequent obstacles to MSME lending have been overcome by combining the global communications network with advanced analytics. New technologies can be used in MSME lending in a variety of ways as well as being tailored to the requirements of MSMEs. Small working capital loans can help upcoming companies, who often do not have significant cash reserves, with their regular cash flow issues.

In order to help traditional banks perform better and make credit institutions more competitive, Chapa will directly aid them. Chapa Capital would offer almost immediate underwriting using the company's revenue data on Chapa. Entrepreneurs can obtain money in as little as 24 hours without having to deal with tedious details or hours of paperwork. Businesses automatically pay back their loans from future earnings — a flexible model that ties repayment to their financial success, not fixed schedules. This additional financing and loan method could be narrowed down and focused on the growth of the company, hiring staff, purchasing equipment or inventory, and attracting new customers. 

With Chapa Capital, we guarantee that:

  • Accessibility will be quick, as there are no time-consuming applications, and the approved funds will reach the business’s Chapa account within the next day
  • Repayments are automated and flexible; the process is completely dependent on the business’s progress
  • Eligibility is determined by the company’s history; it uses advanced algorithms for accurate analysis

The world of online banking is currently more active than ever within countries of higher development. Digital lending makes it possible to draw customers from around the world, expanding partnerships and giving banks additional revenue-generating customers. It is impossible to exaggerate the significance of MSMEs as a key economic engine and provider of jobs, yet fintech can reach out to a big market of underserved populations. In addition, there is substantial interest from foreign investors in the Ethiopian Fintech space, wanting to capitalize on the country’s growing GDP.

Chapa Capital will be a source of income due to the high demand for alternatives to MSME finance. It is challenging for a small business to get a loan, particularly internet-based businesses, which often lack real estate or other physical assets to put up as collateral. Chapa Capital will be available to Chapa users, and it will facilitate access to the loans, handling the servicing and collection process on behalf of its bank partner, by whom the loans will be issued.


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