Equity Uganda edges closer to Islamic banking with Eazzy Stock launch

June 16, 2023 in Companies, Financial Services, Trade & Industry by Editor

Regional lender Equity’s Ugandan unit has launched Eazzy Stock financing, a new product it says responds to existing demand short-term for working capital, through a fast disbursement channel but is also aligned to the principles that govern Islamic banking.

Bank officials say Eazzy Stock will “empower businesses by providing them with the opportunity to unlock the value of their goods and access much-needed capital for growth and expansion.”

Eazzy Stock is designed for agents, distributors, stockists or retailers who are engaged in onward sale of products or services of an Anchor or Manufacturer. It allows these categories to access funds for working capital on demand.

Speaking during the launch of the product June15, at the Kampala Sheraton, managing director Anthony Kituuka said the product would empower businesses and support economic recovery and help sustain growth.

“With the introduction of Eazzy Stock financing, we are offering our customers a powerful tool to unlock the potential of their inventory and achieve their business objectives. This product aligns with our mission to support the entrepreneurial spirit, expand economic opportunities and contribute to the success of businesses across the country and beyond.”

Stock financing, also known as inventory financing, enables businesses to borrow working capital against their existing stock, thereby offering convenient and flexible financing options. This new product is tailored to cater to the specific needs of entrepreneurs, small and medium-sized enterprises (SMEs), and larger manufacturers across various sectors.

Kituuka said that Equity developed Eazzy Stock financing towards the end of the Covid-19 pandemic, to support business recovery better. He explained that with Equity’s Eazzy Stock financing, businesses can leverage their inventory as collateral to secure loans, eliminating the need for traditional collateral or personal guarantees.

“This innovative approach ensures that businesses can tap into their working capital while minimizing their financial risks,” said Kituuka.

He added that the new lending service, addresses the challenges faced by businesses such as cash flow management, meeting seasonal demand and inventory optimization. By providing quick and efficient access to funds, Eazzy Stock financing empowers businesses to navigate operational expenses, invest in growth initiatives and capitalize on emerging market opportunities.

Businesses can unlock the value of their goods and services, to receive immediate funds to meet their day-to-day operations or investment in new projects. Tailored repayment schedules and competitive interest rates ensure that businesses can comfortably meet their financial obligations. The bank has also simplified the application process allowing businesses to apply for stock financing by filling in a one-off loan application form and complete the rest of the borrowing process over their mobile phones. And rather than charge interest, the bank earns a commission calculated against the margins.