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Small and medium-sized enterprises (SMEs) are the backbone of economies, especially in developing markets, where they account for over 80% of goods and services. Yet, despite their critical role, access to finance remains one of the most significant challenges they face. The SME Finance Forum, a global membership network with over 240 members, works tirelessly to address this gap by fostering innovation, sharing knowledge, and promoting the growth of SMEs.
On January 11th, Flow Global had the privilege of participating in the SME Finance Forum Marketplace session, an event that showcased four innovative fintechs driving financial inclusion through services such as mobile money float financing, trust scoring, and trade financing support. Represented by our founders, Michael Rothe and Nitin Garg, we shared how Flow is reshaping the financial landscape for retail merchants in Uganda and Rwanda.
Building the Small Business Bank of the Future
Flow Global focuses on retail merchants—businesses that are at the heart of developing economies but are often overlooked by traditional banks due to a lack of collateral. Despite their vital role in providing access to goods from global giants like Coca-Cola and Unilever, these merchants face financing challenges.
However, the landscape is rapidly transforming. As merchants digitize their operations, becoming mobile money agents or leveraging online platforms to sell FMCG goods, new opportunities arise. This digitization generates actionable business data, such as transaction volumes and sales performance, which Flow uses to make informed credit decisions.
By leveraging our proprietary Flow Liquidity Engine, we offer retail merchants instant access to working capital based on digital business data. This technology combines cutting-edge analytics with proven microfinance strategies, enabling us to provide scalable, impactful solutions.
Driving Impact and Growth
Our approach has delivered remarkable results:
-> 40% average business growth in 6 months for our customers.
-> Best-performing merchants have seen their business grow four-fold.
-> To date, we have disbursed $38.5 million in loans to 240,000 merchants across six ecosystems.
The Flow Liquidity Engine is more than just a financing tool; it’s a comprehensive platform that integrates:
1. Customer Engagement: A user-friendly interface allowing merchants to request loans and interact with the platform.
2. Field Operations: A mobile app empowering our loan officers to deliver seamless support.
Beyond Financing: Collaborating for a Scalable Future
Flow Global is proud to serve as the capital provider, but our vision extends further. We collaborate with third-party lenders and e-commerce platforms, offering components of our platform to help them provide working capital to their networks. This partnership model underscores our commitment to driving financial inclusion at scale and fostering long-term growth for SMEs.
As we continue to empower retail merchants, events like the SME Finance Forum Marketplace session validate our mission and encourage us to innovate further. We remain dedicated to being a reliable growth partner for merchants, helping them thrive in the digital economy and transforming their potential into measurable success.