PharmAccess mobilizes public and private resources for the benefit of doctors and patients through clinical standards and quality improvements, loans for healthcare providers, health insurance, mHealth innovations and operational research.
2018 is ending on a celebratory note for Medical Credit Fund – PharmAccess Group’s non-profit health fund dedicated to health SMEs in Africa – as it issued its 1000th new loan for the year. A new product in particular is responsible for this large number of loans. It’s called Cash Advance and uses the digital revenues of healthcare providers to secure and repay loans.
Executive Chairman of Mediheal Group of Hospitals, Salim Hasham (L) with MCF Executive Director, Arjan Poels and Director MCF East Africa, Kennedy Okong’o
Mediheal Diagnostic and Fertility Center is one of the health SMEs that have received a Cash Advance loan. The Mediheal hospital group is based in Kenya (Nairobi, Nakuru and Eldoret) and also has an outlet in Rwanda. The facility in Nairobi offers outpatient, IVF and complete diagnostics and has 25 IVF and 12 dialysis beds. Since mid 2017 it has availed of 10 Cash Advances worth almost KES 30 million (USD 292,000). They have been crucial to managing cash flows, especially when insurance payments are delayed. Short term working capital needs have been bridged by Cash Advances, this has included timely salary payments and restocking of the pharmacy.
Speaking at the news of 1000 new loans in 2018, Managing Director of Medical Credit Fund, Arjan Poels said, “I am very proud the MCF team have disbursed 1000 health SME loans this year and been able to assist companies like Mediheal in their working capital needs. Special thanks to Ministry of Foreign Affairs of the Netherlands and our other investors who have made this possible through their continued support.”
Salim Hasham, Executive Chairman said, “Mediheal Group works actively to serve the population with a comprehensive range of healthcare services and its collaboration with Medical Credit Fund’s many services significantly leverages our work. The credit, accreditation, and digital platforms go a long way in our ability to provide more effective care and at a much higher level of quality to our beneficiaries”.
Some of the attractive features of a Cash Advance loan are the ease of access through quick processing times, no requirement for collateral and no fixed monthly installments. In addition, loan repayment is based on revenues generated through the borrower’s e-till and they can choose what percentage of revenue is used to pay back as installments. Finally, MCF loans also have a very high repayment rate (97%) compared with the 89% for general SME loans in Kenya.
