Thrive By

OVERVIEW

Thrive Fund operates as an all-encompassing credit facility with a mission to support inclusive and marginalised businesses in Kenya. These enterprises aspire to enhance their production capabilities, introduce innovative product lines, integrate advanced technology, and expand their market reach. Following our inaugural call in August 2023, we gained valuable insights such as:

• Inclusive businesses often require more than just financial aid; they also need substantial business support and capacity building to thrive.

• Many applicants lacked documentation necessary for legal and efficient business operations, such as business permits and registration certificates.

In response to these observations, Thrive Fund is launching a third call with a renewed commitment to providing comprehensive support for inclusive businesses. This initiative goes beyond financial assistance, offering a range of tailored services to facilitate growth and sustainability:

• Financial Support: Up to a maximum of KES 4.5M will be provided to eligible businesses.

• Business Development: technical assistance for businesses will be offered in areas such as business strategy, market positioning, and operational efficiency.

• Branding and Marketing: Guidance and resources will be provided to help businesses enhance their brand visibility and effectively market their products or services.

• Skills Enhancement: Workshops and training sessions will be conducted to empower the business owners with essential business skills, fostering long-term success and resilience.

Thrive Fund is dedicated to fostering an inclusive and thriving business ecosystem in Kenya, where all businesses, regardless of size or background, have the opportunity to prosper.

BORROWER ELIGIBILITY

If you're looking to borrow money, there are some important things you need to demonstrate:

• Ownership: You need to prove ownership of the business 

• Registration: Your business must be officially registered and follow the rules in Kenya. 

• Being Able to Repay: Assessment of your business's financial stability and capability to repay the loan will be conducted. You will be asked to submit financial statements for evaluation, allowing us to gauge your ability to manage finances effectively and meet repayment obligations.

• Being Inclusive: Having an inclusive and diverse business is beneficial. This can be demonstrated through actions like actively recruiting LGBTQIA+ individuals and establishing partnerships with suppliers who support queer communities.

TYPES OF LOANS

We have four types of loans to choose from:

1. Asset Financing: We can give you a loan to buy equipment for your business 

2. Term Loans: These loans are given for a period of 4 years  (short time), and you pay back the capital and the predetermined interest.

3. Revenue-Based Financing: Instead of repaying a fixed amount each month, your business shares a small percentage of its future revenue with us.

4. Short-Term Financing/LPO Financing: This involves advance financing for the cost of goods supplied based on a local purchase order (LPO). To qualify, the borrower must have a confirmed purchase order. The LPO must be non-cancellable and cannot be based on a sale where the supplier is guaranteed payment only if the goods are sold.

EXAMPLES OF USE CASES

You can use the loan for different things like:

• Growing Your Business: Opening new locations or hiring more people.

• Buying Equipment: Getting new tools and software or making the ones you have better.

• Getting More Products: Acquiring more things to sell.

• Business Expenses: To cover any other production costs and overhead costs 

• Servicing a Client Order: We can give you up to 70% of the cost needed to complete an order.

THE LOAN TERMS AND COSTS

The loan terms and costs are structured as follows:

• Loan Amount: Up to a maximum of KES 4.5M for both term loans and asset financing.

• Interest Rate: Fixed at 7.5% on a reducing balance for term loans and asset financing, providing stability and predictability in repayment.

• Duration: Loans are available for a maximum term of up to 4 years, offering flexibility in repayment schedules and accommodating varying business cycles and growth trajectories.

1. Customisation: We are committed to tailoring our loan offerings to suit your unique business requirements, ensuring that the financial support provided aligns closely with your specific objectives and circumstances. Whether it's adapting repayment schedules, structuring loan packages to meet specific investment needs, or providing additional support services, our goal is to collaborate closely with you to facilitate your business's success.

APPLICATION PROCESS

1. Applications Open

   Thrive opens for applications. Applicants will need to create an account with submittable to apply. Applicants who complete the application form will receive a notification that we have received their application.

2. Initial Sieve

   This stage involves reviewing documents to make sure the documents requested; Mpesa/Bank statements and a copy of CR12.

3. Pitch Prep 

   Successful applicants are notified that they have been selected to come and pitch their business and investment plan. Pitch decks are handed out to successful applicants, who are given a week to prepare. Another message is sent out to facilitate pitch scheduling.

4. Pitching sessions

   A shortlist is compiled after pitches happen. At this point, commitment letters are sent out to all successful pitches, detailing the next processes of due diligence and financial modelling, which can then move forward once the businesses agree to the given terms.

5. Due diligence

   Visits to applicants with successful pitches are made. This includes reference checks and an in-person review of the business premises and documents.

6. Financial modelling

   Businesses shortlisted after due diligence are called in for collaborative financial modelling meetings. This process entails creating a detailed mathematical representation of your company's financial performance to forecast future outcomes and inform decision-making.

7. Final list of eligible businesses

   The final list of eligible businesses is made available to the investment committee for approval, and offer letters will be shared with the successful businesses.

8. Contracting

   Contracts are signed, after which the first loan disbursements will proceed.

Frequently Asked Questions