Fintech company Tabb has partnered with Galana Energies to unveil the country’s first large-scale fuel credit line for fleet and logistic companies.
The facility has already been launched across all Galana Energies fuel station allowing gleet and logistic users to access interest free fuel through collaboration with their banks, away from the upfront cash payment and short term credit structure that previously existed.
The news comes barely a month after fuel prices in the country increased sharply forcing logistic companies to continue with their operations despote the high cost incured.
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“The challenge confronting fleet operators, transporters, and logistics companies is not simply that fuel costs more. It is that the same fleet now requires substantially more capital to operate than it did weeks ago.
For businesses running large fleets, this represents a significant and sudden increase in the cash required simply to fill a tank before a single delivery has been made or a single contract fulfilled,” said Tabb Director Don Okoth
“What we’re launching today is the clearest expression yet of tabb’s role in the market: connecting banks, suppliers, and businesses so that credit flows to where it is needed, instantly and without cost.” he continued
How the system work is that the companies apply for a revolving fund through Tabb’s partner financial insititutions. The companies would then access the fuel at all Galana Energies stations.
Repayment has been structured on a 30 to 90 credit period making it convenient for logistic company make payments based on revenue.
The credit facility also removes previous hurdles the companies had to endure to access the precious commodity as it involved inconsistent approvals.
“I see this partnership as the inflection point where tabb’s trade credit network moves from enabling transactions to fundamentally reshaping how the entire transport and logistics industry finances its largest expense. Credit should be a tool for growth, not a burden, and that is exactly what we are making it,” said Tabb CEO Mesh Alloy
