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