Ecobank launches digital lending facility for merchants based on transaction history

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Kampala, Uganda | THE INDEPENDENT | Ecobank Uganda has launched a digital lending facility that allows eligible merchants to access up to Shs70 million in working capital based on their digital transaction history rather than physical collateral.

The Electronic Merchant Cash Advance (eMCA) is designed to provide short-term financing to businesses that collect payments through Ecobank’s Point-of-Sale (POS) terminals, web and Quick Response (QR) channels.

The bank said merchants become eligible after building at least three months of transaction history. An automated credit system then determines the facility limit, which can be up to 50% of the merchant’s average monthly digital collections.

The facility is disbursed digitally after the merchant accepts the offer and confirms the transaction using a one-time password. Repayment is made in a single settlement within 30 days and is automatically deducted from the merchant’s collection flows.