Equity Bank launches Eazzy Stock, a stock financing service offering up to UGX3 bn in collateral-free short-term business loans Eazzy Stock from Equity Bank Uganda is a form of stock/inventory financing that enables businesses to borrow working capital against their existing stock, instead of collateral, thereby offering convenient and flexible financing options. The new lending service helps businesses to right-size their borrowing among other benefits, as well as helps businesses to preserve cashflows and address challenges associated with seasonal demands.

Equity Bank, one of the leading financial institutions in Uganda known for its innovative and customer-centric solutions, is excited to announce its latest credit product- Eazzy Stock financing. 

Eazzy Stock is a digital credit product designed to empower businesses by providing them with the opportunity to unlock the value of their goods and access much-needed capital for growth and expansion.  

The product targets agents, distributors, stockists or retailers who are onward sellers of products or services of an Anchor or Manufacturer. It allows these categories to access funds for working capital conveniently as and when required.

Speaking at the launch of the product yesterday, June 16th 2023, at Sheraton Kampala Hotel, Managing Director Anthony Kituuka said that Eazzy Stock would “provide innovative financial solutions that empower businesses and drive economic 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,” he said. 

“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,” the bank further said in a statement.

Kituuka said that Equity Bank developed Eazzy Stock financing towards the end of the Covid-19 pandemic, to support businesses to recover 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 minimising their financial risks,” added Kituuka.

Quick and efficient access to vital financing

Through the new lending service, the bank aims to address the challenges faced by businesses such as cash flow management, seasonal demands and inventory optimisation. 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. 

Speaking at the launch, Paul C. Sine an Equity Bank Board Director said that, by offering businesses up to UGX3 billion, Eazzy Stock, is a non-conventional lending service that will expand market opportunities and “build capacity for local businesses to compete favourably”.  

“The Eazzy Stock Financing Solution is smart. It provides a lower cost of capital to keep supply chain costs in check, optimises working capital for both the distributor and manufacturer or supplier, greatly streamlines the payment process, and it eases financial reconciliation between both parties,” he said.

“For many entrepreneurs suffering from low capital base and lack of collateral to support credit facilities needed for their businesses, this Eazzy Stock financing solution is best suited for you, because your lack of fixed collateral ceases to be a challenge. The only challenge that exists is your trust index; between you -the entrepreneur and your supplier, then between yourself and the bank. EQUITY Bank has come to make TRUST a currency for business financing, and it will only succeed if the value all parties place on TRUST is mutual,” he added.  

According to the bank, Equity’s Eazzy Stock financing offers a range of benefits to its customers, including:

1. Increased cash flow: By unlocking the value of their goods and services, businesses can receive immediate funds to fuel their day-to-day operations or invest in new projects.
2. Flexible repayment options: Tailored repayment schedules and competitive interest rates ensure that businesses can comfortably meet their financial obligations.
3. Streamlined application process: Equity Bank has simplified the application process allowing businesses to apply for stock financing with ease and speed.Stockists or retailers fill in a one-off loan application form and conduct the rest of the borrowing process from the comfort of their mobile phones.
4. The facility is accessed through USSD, *247# code.
5. No interest charged: The commission charged is based on the margins earned, therefore, catering to entrepreneurs of the Muslim faith.

About Equity Bank, Uganda

Equity Bank Uganda began its operations in 2008 and is regulated by the Bank of Uganda. The Bank has its Head Office in Kampala and a network of 50 branches, 8,640 Equi Duuka agents, over 2000 Merchants and 52 ATMs spread across the country and serving close to 2 million customers.

Equity Bank Uganda is a subsidiary of Equity Group Holdings Plc, a financial services company listed at the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange. In addition to Equity Bank Uganda, the Group has banking subsidiaries in, Kenya, Rwanda, Tanzania, DRC, South Sudan, and a Commercial Representative Office in Ethiopia; with additional non-banking subsidiaries engaged in the provision of investment banking, custodial, insurance agency, philanthropy, consulting, and infrastructure services.

Equity Group is the largest bank in the region with assets of USD 12 billion. It is also the largest bank in terms of deposits, with a market capitalization of USD 2 billion and a customer base of over 15 million. The group has 337 branches, 56,772 agents, 32,269 merchants, 697 ATMs and has widely adopted digital banking channels.