By Mulengera Reporters
A local distributor of Unilever products has credited Equity Bank for turning around his business operations by easing access to finance, reducing risks associated with cash handling, and offering tailor-made banking solutions that suit the needs of small and medium enterprises (SMEs).
Mr. Nuhu Kanyike, the Managing Director of Falkan Investments Ltd, said his partnership with Equity Bank started in 2017 at a time when his business was facing delays in obtaining a bank guarantee from another financial institution.
“I had waited for weeks with no progress,” he said, adding that a fellow distributor advised him to try Equity Bank. Within a week, the bank had issued the required guarantee, enabling him to resume operations as a Unilever distributor.
The guarantee facility, he said, allowed the business to access Unilever stock with 17-day payment terms, something that gave him room to operate without straining his working capital.
According to Kanyike, many SMEs like his struggle with liquidity challenges, especially when supplying fast-moving goods. He the Bank was different because it offered financial products that aligned with his cash flow needs.
But he also pointed out that it was not just credit access that made the difference. Before working with Equity Bank, his field sales team would return with large amounts of cash from upcountry trips, which posed both security threats and operational delays.
“We used to spend hours counting money in the warehouse, and it was risky,” he said.
That changed when Equity Bank introduced him to their agency banking network.
With more than 9,000 ‘Equi-Duuka’ agents spread across Uganda, Kanyike’s staff are now able to deposit sales money in real time from wherever they are.
The money reflects instantly on the company’s account, meaning trucks no longer have to return with cash on board, which has helped Falkan Investments expand to new areas like Ishaka and Karenga, which were previously avoided due to insecurity.
“Now our trucks come back empty. No more carrying cash,” he noted.
He added that the bank’s flexibility in offering short-term working capital loans has also enabled his company to boost stock when sales demand spikes. The company is able to pay back such loans within a month, which he said is crucial in keeping up with targets.
“Sometimes you just need a short-term push, and they understand that,” he said.
Kanyike said he considers Equity Bank more than just a lender. “They’ve given us tools that make real business sense,” he said, urging other SMEs to partner with financial institutions that understand the day-to-day operations of Ugandan businesses.
His experience, he said, is proof that with the right kind of banking support, local enterprises can overcome longstanding barriers and grow sustainably.
