Stock Finance

This is the advancing funds against Local Purchase orders that suppliers will have received from buyers, to supply certain goods.

 

Requirements

  • Application form duly completed                                         
  • Board of Directors resolution to open accounts                                    
  • Certificate of incorporation/Registration        
  • Company PIN & VAT                     
  • ID & PIN copies of all directors
  • Copy of Annual Returns/CR 12 
  • Utility Bill                                         
  • Proposal for borrowing indicating: amount being borrowed, Purpose, type of facility required, proposed repayment period and any other relevant information
  • Audited accounts for the last three years
  • Current management accounts
  • Debtors and Creditors Ageing

  

Fees & Rates/Costs

Interest rate is Central Bank Rare (Currently 9%) plus a margin of 4%p.a. i.e. 13%p.a. or 10%p.a. for USD loans.

*For USD loan 2% commitment fee.

 

Features

  • Maximum Loan – 60% of input cost of servicing LPO                                                                  
  • Minimum loan – Kes 50,000                               
  • Maximum Tenor – 4 months                              
  • Maximum Limit – Maximum exposure to a customer on LPO financing will be 70% of 3 months’ total turnovers from the issuer of the LPO                                                                       

Availability

  • Facility will revolve for 12 months upon which supplier will be reviewed for renewal
  • Pricing LPO Advance Fee 3% p.m. on the funds advanced
  • LPO Advance Commission 1% of funds advanced
  • Communication Fee Kes. 1,500 Extension Fee (Advance fee + 1%) p.m. upon application Penalty fee 5% p.m.    

 

Benefits

  • May reduce overall borrowing costs. Offers you a means of financing regular or one-off purchases of goods and raw materials through a simple-to-draw, fully revolving facility                                      
  • Provides funds until you receive payment from the on-sale of goods
  • Offers funds in Shillings and most major currencies with fixed interest rates

TIPS

A Business Tip Every SME Owner Should Know

The biggest problem founders and owners of small businesses have is that they are experts in

Always Budget When You Borrow Money

Before you borrow money, ensure you can make the monthly payments.

Failure to do so

Asset Finance TIPS

Starting a business is a tricky affair. Maintaining the business momentum and a competitive edge