This research paper explores viable and scalable solutions for rural asset finance, to support PAYGo companies and other last-mile distributors. The pressure to hit short-term sales targets weakens loan repayment quality and undermines investor confidence. The paper takes a practical, field-based approach to designing workable solutions.
It compares four small asset finance models: microfinance institutions, micro leasing, PAYGo and specialised asset fintechs. Case studies include LOLC, Centenary Bank, Mufin Green, Baobab+ and Watu.
A survey of 27 last-mile distributors found that 67% offer in-house credit, 18% do not offer credit at all and 15% outsource credit. The paper sets out what distributors need from a new credit model, and the risks to manage.