KOKO Merchants Credit Facility is set to give eligible merchants a more convenient route to business financing, combining KOKO’s digital merchant ecosystem with Sampath Bank’s established financial services capabilities.
KOKO Merchants Credit Facility links eligible merchants with Sampath Bank financing
Sampath Bank PLC and KOKO have partnered to introduce the KOKO Merchants Credit Facility, creating a new financing pathway for eligible merchants within KOKO’s expanding ecosystem. The initiative is aimed at helping businesses access funding for inventory purchases, working capital requirements, cash-flow management and expansion.
The partnership extends KOKO’s role beyond its established payments and customer financing services by connecting merchants with the financing capabilities of Sampath Bank. For businesses operating in competitive markets, access to timely funding can be important when managing day-to-day expenses, replenishing stock or responding to changes in customer demand.
Under the new arrangement, eligible merchants can seek financing to purchase and replenish inventory, manage working capital and cash flow, respond to seasonal demand and invest in business expansion. The facility is therefore positioned as a financing option that can support both immediate operational requirements and longer-term business growth.
A key feature of the KOKO Merchants Credit Facility is its streamlined assessment process. Relevant information from a merchant’s existing relationship and transaction activities with KOKO can be considered as part of the assessment, potentially reducing some of the time and effort normally associated with traditional financing processes.
For merchants, the use of existing business-related information can provide a more connected financing experience. Rather than approaching business financing as an entirely separate process, the partnership seeks to make use of information generated through merchants’ existing engagement with the KOKO ecosystem.
The collaboration brings together two different areas of financial services. KOKO contributes its digital platform and merchant network, while Sampath Bank provides access to its banking and lending capabilities. Together, the organisations aim to create a practical financing pathway for eligible businesses seeking additional resources to operate and grow.
The initiative also comes at a time when small and growing businesses continue to require flexible access to funding to manage inventory cycles, cash requirements and investment decisions. For merchants, working capital can be particularly important when purchasing stock ahead of periods of stronger demand or maintaining operations while awaiting customer payments.
Through Sampath Bank business financing, eligible merchants within the KOKO ecosystem can explore funding that may support different stages of their business requirements. These can range from maintaining regular inventory levels to financing opportunities that allow businesses to expand their operations.
The partnership also highlights the growing importance of digital ecosystems in connecting businesses with financial services. As digital platforms increasingly become part of everyday commercial activity, transaction relationships and merchant data can potentially support more streamlined interactions between businesses and financial institutions.
For KOKO, the facility adds another dimension to its KOKO merchant ecosystem, giving participating businesses access to a broader range of financial support through its partnership with a banking institution. For Sampath Bank, the collaboration provides an opportunity to engage with merchants through an established digital ecosystem and offer financing solutions to eligible businesses.
The facility is intended to support merchants in focusing more of their time and resources on their businesses. Access to financing can help businesses respond to immediate operational needs while also considering opportunities to introduce new products, increase inventory, improve operations or expand their market presence.
However, access to the facility is not automatic. Credit facilities remain subject to Sampath Bank’s eligibility criteria, credit assessment, applicable terms and conditions, and final approval. Individual merchants will therefore be assessed according to the bank’s established lending requirements.
The partnership between Sampath Bank and KOKO ultimately represents an effort to connect digital commerce with formal business financing. By bringing KOKO’s merchant ecosystem together with Sampath Bank’s financial services expertise, the initiative aims to create a more convenient route for eligible merchants seeking funding to strengthen their operations and pursue new growth opportunities.