Float Advance Terms and Conditions

1. The Agreement

These Terms and Conditions (the “Terms”) set out the complete agreement between you (the “Agent”), ChapChap Africa Ltd (“ChapChap”), and any partnering financial institution (“Partner Bank”) for the provision of the ChapChap Float Advance Service (the “Service”).

These Terms shall be binding upon you, your representatives, and assigns. 

These Terms are supplementary to and must be read in conjunction with the ChapChap Agent Terms and Conditions and any other agreements governing the use of ChapChap services.

By accepting or using the ChapChap Float Advance Service, you agree to be bound by these Terms and any subsequent amendments or updates. 

2. Definitions

• “Agent” means a registered and active ChapChap agent authorized to perform transactions on behalf of ChapChap. 
• Float Advance means the short-term credit facility/advance granted by ChapChap to eligible agents to support transactions during low wallet balance periods to enable continued business operations through access to working capital. 
• Credit Limit” refers to the maximum allowable advance limit that can be extended to the Agent based on their transaction history and credit assessment. 
• Due Date” means the date by which repayment of the Float Advance and applicable charges must be made. 
• Fees means the service charges, penalties, and any applicable interest accrued on the Float Advance. 
• Wallet means the ChapChap wallet account held by the Agent. 

3. Eligibility and Application

To qualify for the Float Advance Service: 

• You must be an active, licensed ChapChap Agent with a satisfactory transaction history. 
• You must meet ChapChap’s internal credit assessment criteria. 
• You must have completed Know Your Customer (KYC) and any other due diligence requirements as required by law and ChapChap’s internal policies. 

Only agents who meet ChapChap’s internal eligibility criteria, including but not limited to transaction volume, repayment history, and performance rating, may qualify for the Float Advance. 

ChapChap reserves the right to assess and determine eligibility, assign credit limits, adjust limits periodically, or revoke access at its sole discretion and without prior consent. 

ChapChap reserves the right to approve or decline your application for the Service without providing reasons. 

4. Float Advance Facility

Upon approval, you shall be granted access to a credit facility not exceeding your determined Credit Limit. The advance may be disbursed directly to your ChapChap wallet or Agent float account or such channels as ChapChap may designate. 

The Float Advance will be automatically credited to the Agent’s wallet and shall be repayable through daily deductions from the Agent’s wallet earnings. 

The Float Advance Limit is dynamic and may be reviewed upwards or downwards based on the Agent’s usage behavior, repayment consistency, and risk profile. 

The Float Advance must only be used to facilitate ChapChap-related business transactions (exclusively for purposes aligned with ChapChap agent operations, including cash management and transaction processing). 

5. Charges, Fees and Interest

You shall be charged:

• A service fee determined as a percentage of the advance amount communicated prior to drawdown. 
• All outstanding amounts, including principal and applicable fees, will be recovered from the Agent’s wallet in accordance with the repayment terms. 
• Late repayment penalties, misuse, or breach of the terms may attract penalties and/or suspension of access to the Service, where applicable. 

All applicable charges shall be disclosed prior to disbursement and automatically deducted upon settlement. 

ChapChap reserves the right to revise its fees or service fee rates and shall notify the Agent of such changes in advance. 

6. Repayment

Repayment shall be effected on or before the Due Date and may be: 

• Automatically deducted from your ChapChap wallet balance or commissions. 
• Made manually through designated payment methods approved by ChapChap.

Partial payments may be accepted, but full settlement is required by the Due Date to avoid penalties and service suspension. 

7. Default and Recovery

In the event of default, The outstanding amount, service fee, and penalties shall become immediately due and payable and ChapChap may take the following actions without notice:

• Suspend or terminate access to the Float Advance Service or agency account; 
• Reduce or cancel the Agent’s limit;
• Offset the outstanding amount against any future wallet earnings;
• Initiate recovery proceedings including legal action or credit reporting licensed Credit reference Bureaus (CRBs) in line with applicable laws. 

The Agent agrees and acknowledges responsibility to repay the Float Advance and any related fees in full, regardless of technical faults, platform issues, or third-party failures. 

8. Use of Personal Data

By applying for and using the Float Advance, you consent to ChapChap collecting, sharing, and processing your personal and transactional data with Partner Banks, credit bureaus, or regulatory authorities solely for purposes of credit assessment, reporting, or recovery. 

All data will be handled in accordance with Uganda’s Data Protection and Privacy Act, 2019. 

9. Variation of Terms

ChapChap reserves the right to amend these Terms from time to time in response to regulatory changes, business requirements, or risk considerations. Updated Terms shall be published on the ChapChap platform or communicated via your registered contact details. 

Continued use of the Float Advance Service after such variation constitutes your acceptance of the updated Terms. 

10. Termination

ChapChap may suspend or terminate your access to the Float Advance Service at any time with or without cause, including upon breach of these Terms or deactivation of your agency account. 

You may also opt out of the Service by providing written notice and settling all outstanding obligations. 

11. Dispute Resolution

Any disputes arising under these Terms shall be resolved amicably in the first instance.
Failing resolution, the matter shall be referred to arbitration in accordance with the laws of Uganda. 

12. Governing Law

This agreement shall be governed by and construed in accordance with the laws of Uganda.