Fuliza ya Biashara: Understanding Business Overdrafts

What is Fuliza ya Biashara?

Fuliza ya Biashara is the business version of the popular Kenyan overdraft service that works with M-Pesa. It lets merchants complete payments or receive money even when their till balance is low, with the amount owed settled later. The service is designed to support cash flow for everyday sales that rely on mobile money.

How Fuliza ya Biashara works

In practice, Fuliza links to the merchant's M-Pesa account. When a payment or transaction would fail due to insufficient funds, Fuliza covers the shortfall up to a predefined limit. The resulting debt is recorded and is typically due to be repaid within a short window, with fees charged for the credit. Tariffs and availability can vary by provider, so it’s important to check the latest details with Safaricom or your financial partner.

Eligibility and Getting Started

Eligibility usually includes an active Safaricom line, a business M-Pesa account, and a track record of using M-Pesa for business transactions. Enrollment is commonly done through the M-Pesa app or via your service provider; you may need to accept terms and provide basic business information. Since terms can differ, contact your operator for the exact steps.

Benefits for Businesses

• Keeps checkout flowing even when funds are tight
• Can raise checkout completion rates and potentially boost sales
• Supports faster cash flow without immediate cash top-ups

Costs, Fees, and Risks

Fuliza carries fees for the credit used, and the cost can vary by provider and transaction size. The charges can add up if balances are carried for longer periods. As with any credit facility, there is a risk of debt accumulation if not monitored. It’s helpful to keep track of outstanding balances and use internal controls.

Best Practices and Tips

• Set a clear internal limit for Fuliza usage and monitor it regularly
• Use alerts to catch overdue balances early
• Integrate Fuliza usage with your accounting and cash-flow planning
• Compare Fuliza costs with other financing options available to your business

Alternatives to Fuliza

• Bank overdrafts or lines of credit
• Supplier credit and favorable payment terms
• Proactive cash-flow planning and maintaining a cash reserve
• Other mobile-money credit products offered to businesses