Avenews targets liquidity gaps in agribusiness through supply chain financing model

A Kenyan agri-trade finance platform is reshaping how agribusinesses access working capital by focusing on cash flow gaps across the supply chain rather than traditional asset-backed lending, according to Senior Commercial Officer, Avenews, Betty Mulemia Simiyu.

Simiyu says the firm is addressing one of the biggest challenges in agriculture, delayed payments between buyers and suppliers, which often disrupt the smooth movement of goods and limit business growth. She explains that the platform provides financing that follows the rhythm of trade cycles instead of relying on fixed collateral such as land or equipment.

Speaking on Wednesday during a Radio Generation interview, she said Avenews operates as an agri-trade financial platform that connects suppliers, distributors, processors, retailers and stockists along the farm-to-consumer chain, ensuring continuous flow of both goods and money within the system.

The company’s model uses invoice discounting, transaction-based lending and technology-driven approval systems to give agribusinesses fast access to working capital. Through this system, businesses are able to receive funds based on verified trade activity while waiting for payments from buyers.

Instead of relying on physical assets, Avenews evaluates creditworthiness using transaction data, invoices and established trade relationships. The platform also advances payments directly to suppliers and in some cases pays distributors to supply stockists such as agro-dealers and retailers, helping to keep supply chains active without interruption.

Simiyu says the model is built around cash flow financing, noting that agribusinesses frequently experience payment delays of up to 30 days, which creates pressure when new orders must be fulfilled. By discounting invoices, the firm advances cash early, allowing suppliers to restock and meet demand from multiple buyers without waiting for payment cycles to close.

Eligibility for the financing requires agribusinesses to have been in operation for at least 12 months. She explains that this period allows the company to assess seasonal trends, price fluctuations and operational consistency before extending credit.

Applicants are also required to present tax compliance certificates, alongside proper records of receivables and payables, which are used to evaluate financial discipline and repayment capacity. The platform relies heavily on bank statements, trade records and business activity as indicators of creditworthiness rather than physical collateral.

Simiyu contrasts this approach with traditional lending systems, noting that banks often depend on physical security and broad credit scoring models, while Avenews focuses on speed, trade cycles and the realities of agricultural perishability. She adds that sectors such as avocado exports and grain storage, where risks like aflatoxins can arise, require faster access to financing to reduce losses.

The platform uses digital systems to offer quick, paperless approvals and recurring credit limits, allowing businesses to request funds without repeated applications. Interest rates range between five and ten percent depending on the value chain and seasonal conditions, reflecting the level of risk in each transaction.

Funding for the model is drawn from impact-oriented investors and earlier strategic partnerships, including an accelerator programme with Absa Bank in South Africa, which helped refine its digital lending approach.

Simiyu notes that not all applicants qualify, as some are declined for lacking proper transaction records, not being active in agribusiness, or failing to meet compliance and financial record standards. However, she adds that the company maintains a relationship-based approach by advising rejected applicants on gaps and allowing them to reapply after addressing the issues.

She further explains that data analytics plays a key role in tracking trade relationships, transaction frequency and payment behaviour, enabling the platform to assess real economic activity rather than perceived risk. This, she says, helps improve access to credit for underserved agribusinesses, especially small and medium enterprises in rural areas.

Simiyu concludes that the goal of the model is to ease pressure on both suppliers and buyers by ensuring smoother trade flows and improving access to working capital across the agricultural sector, while maintaining a focus on speed, efficiency and supply chain stability.