Khemfina

There is no country where gender inequality does not exist, it occurs in every sector of social existence. In most societies women are subjected to various degrees of sub-ordinations. In terms of access to credit, there are huge conditionality like collateral security, sureties and other administrative formalities to credit facilities. Most women in rural areas lack these conditions hence; their access to credit facility is limited. Therefore, Khemfina provides avenue for rural women to overcome these challenges through liberal credit requirements.
Khemfina supports rural women entrepreneurs with trade credit and credit asset in funding the growth of their businesses and acquisition of economic inputs in order to improve productivity.

This creates ample opportunities for job creation, production expansion and growth of small scale enterprises in rural areas.

In many rural communities in Nigeria, access to credit is a vital issue in the acquisition of economic inputs. The provision of credit services has been increasingly considered as a major instrument for employment creation,  production expansion or undertake improvements in productivity and income.
 Rural women have been among the most neglected groups, one which with the greatest unrealized potential. However, It is now increasingly recognized that rural women are important not only in food production, but also in cottage industry and petty trade and commerce. It has been estimated that women have highest number among the participants in the informal sector, access to economic resources has been greatly restricted due  to the conditionalities or procedures for obtaining credit are too complicated and time-consuming for the women entrepreneurs who needs the credit in advance of the purchasing of production asset. In such a context, direct provision of credit to women is considered an important way to initiate a process of social and economic change for women, that is to facilitate a transition from a life of dependency and social disadvantage to greater self-confidence and self-reliance. Hence, direct access to production credit may also serve as an important means of enhancing their economic participation.

Khemfina provides supervised trade credit and credit input to rural women-led SMEs who don't have enough capital or access to credit in the acquisition of production inputs through financial commitment of individual women entrepreneur in terms of savings for business purposes and ensure prudent utilization of savings facilities to target appropriate women-owned SMEs.

We support various economic activities such as farm and non-farm income generating activities that enhance financial capacity of rural women.

Our business model is to adopt contributing savings and credit groups, in terms of informal savings clubs or mutual aid groups in order to raise considerable credit to fund their credit facilities and credit inputs.This will enhance financial group commitments in terms of credit disbursement and recovery. We use different modalities of operations such as;

Credit inputs with saving:

This allows women entrepreneurs to make contributions towards acquisition of production assets. The production assets are acquired in excess of entrepreneur’ contributions. The acquired production inputs are used to grow their business and earn revenue and the repayment of the excess of their contributions is made gradually over time.

Self-financing inputs (Savings):

This allows  the entrepreneurs to make full contributions of savings towards production assets wherever they are to purchase production inputs for their business. They will use the assets to grow their business and earn revenue

Trade credit:

This allows regular savings from entrepreneurs in order to raise capital for their businesses. Trade credit is given in excess of their contributions. We rely on the savings history of the individual entrepreneur in their cluster before capital disbursement as well as cash flow statement from the business to serve credit repayment.

The interest of the rural women- led small scale business have not been adequately addressed. While in many rural communities, micro-finance institutions have not attained a scale and no close proximity to rural areas. One peculiarity of our solution over other micro-leasing institution is a coverage to make a significant impact on the credit problem of the rural women entrepreneurs and dedication to improved credit and flexible saving schemes, tailored to the capital and credit in the acquisition of production inputs.

Our business model is to adopt contributing savings and credit groups, in terms of informal savings clubs or mutual aid groups in order to raise sizeable or considerable credit to fund their credit facilities and credit inputs.
This procedures enhance financial group commitments in terms of credit recovery and repayment.

This will help to build sustainable business by enabling them to acquire necessary equipment, raw materials etc., required for production process for their  businesses in excess of their contributions without acceptable collateral security and other administrative formalities. We use different modalities of operations such as;

Credit inputs with saving:
This allows women entrepreneurs to make contributions towards acquisition of production assets. The production assets are acquired in excess of entrepreneur’ contributions. The acquired production inputs are used to grow their business and earn revenue and the repayment of the excess of their contributions is made gradually over time.

Self-financing inputs (Savings):
This allows  the entrepreneurs to make full contributions of savings towards production assets wherever they are to purchase production inputs for their business. They will use the assets to grow their business and earn revenue

Trade credit:
This allows regular savings from entrepreneurs in order to raise capital for their businesses. Trade credit is given in excess of their contributions. We rely on the savings history of the individual entrepreneur in their cluster before capital disbursement as well as cash flow statement from the business to serve credit repayment.

Further, they also assist in
obtaining external expert advice wherever necessary, particularly from field officers. We will continue to follow-up with them and  assist them to grow

Our model is savings and credit women groups in order to derive their credit funds from the savings. This allows women to get access to  business capital and production assets and use the assets to grow their business and earn revenue
This will enhance the employment creating potential of the informal and small scale sector.

We approximately target  2, 000 rural women micro businesses  in one year and tend to finance 10,000 women entrepreneurs over a time span of  5years.

To assist rural women-led SMEs with access to production credit in order to improve their livelihoods.

The overall goals is to improve the living conditions of rural women

The major barrier to the accomplishment of this solution is funds. I mean equity capital for the core funding of the enterprise.

We tend to address this barrier by  sourcing funds through angel Investors,  crowdfunding or winning a challenge such as Mission Billion Challenge.

Presently, we have four people working on the Solution

We are a passionate solution team who are always thinking about how to solve problems using business skills and business thinking. The fact that many of this team members are professional in various fields ranging from banking, IT, R&D and business development is an added advantage. They possess relevant experience in banking, insurance and other  businesses. They will bring a wealth of these experiences to deliver the solution.

We are partnering with various rural women cooperative societies to introduce and make detailed information about our services in order to have their patronage.

We also have a strategic partner App or software developer for data gathering, management of all necessary collections functions, including savings and monitoring of cash, credit and asset transfers.

Our business model is to adopt contributing savings and credit groups, in terms of informal savings clubs or mutual aid groups in order to raise sizeable or considerable credit to fund their credit facilities and credit inputs.
This procedures enhance financial group commitments in terms of credit disbursement, recovery and repayment. This will help to build sustainable business by enabling them to acquire equipment for businesses in excess of their contributions without acceptable collateral security and other administrative.

We use different modalities of operations such as;

Credit inputs with saving:
This allows women entrepreneurs to make contributions towards acquisition of production assets. The production assets are acquired in excess of entrepreneur’ contributions. The acquired production inputs are used to grow their business and earn revenue and the repayment of the excess of their contributions is made gradually over time.

Self-financing inputs (Savings):
This allows  the entrepreneurs to make full contributions of savings towards production assets wherever they are to purchase production inputs for their business. They will use the assets to grow their business and earn revenue

Trade credit:
This allows regular savings from entrepreneurs in order to raise capital for their businesses. Trade credit is given in excess of their contributions. We rely on the savings history of the individual entrepreneur in their cluster before capital disbursement as well as cash flow statement from the business to serve credit repayment.

We further assist them in obtaining external expert advice wherever necessary, particularly from our field officers. We will continue to follow up with them and assist them to grow their businesses.

We tend to funds our Solution through angel Investors,  crowdfunding or winning a challenge such as Mission Billion Challenge. To remain financially sustainable, we charge little interest (2-5%) and credit repayment through Group Guarantee Arrangement.

We seek to raise equity funds amount to $50,000 to be able to funds our credit services.This will help us to finance excess capital in raising business capital and purchasing of production necessary equipments for women entrepreneurs in addition to their contributions.

40-50% of total business capital and cost of production equipments would be borne by the entrepreneurs while we complement remaining capital or cost by ways of group guarantee arrangements.

This group guarantee arrangements serve a security margin to be able to recover this funds. Any defaulter will affect other group members by their savings contributions.

To be able to raise equity capital in order to fund our solution.

We are partnering with various rural women cooperative societies to introduce and make detailed information about our services in order to have their patronage.

We also have a strategic partner App or software developer for data gathering, management of all necessary collections functions, including savings and monitoring of cash, credit and asset transfers.