We support your business by providing financing up to 60%* cost of goods to be supplied against a Local Purchase Order received from a client, and/or issuer of a contract, enabling you to fulfill goods and services you have committed to.
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Shari’ah contract: Liquidity Murabaha Financing or Murabaha.
Target Audience
- ALL SMEs in all Trade Sectors (Supplier Financing).
Term
- 120 days.
Past – track record:
- At least 3 past contracts performed, and proceeds paid through KCB in the last 6 months.
- Demonstrated ability to service the LPO loan from other sources in the event of non-payment LPO proceeds.
- Letter of Undertaking: We have introduced Deed of Assignment of Receivables that is enforceable in law.
Rates & Fees*
- Documentation fee of 3%.
- Competitive Profit rate.
- Insurance Premium shall be paid at the rate of 0.33% per annum of the facility advanced by the borrower (single life) and an additional 0.165% per annum for each additional joint borrower (Joint life).
- Minimum premiums Kes 20.
- Extension fee due to delayed payments - 1.5% of the advanced amount.
- Directors’/Corporate/Company Guarantees documentation stamping fees- Kes – 3,000.
Financed Amount
- Retail; 60% of LPO value.
- Submit breakdown of costs e.g., BQs, proforma invoices, etc. Demonstrate ability to raise deposit upfront.
- However up to 80% of the LPO/LSO value on condition that the applicant must have successfully serviced past LPO from the same issuer.
Collateral
- Kes 100,000 to Kes 5M; Will require simple deposit of collateral with undertaking to charge or signed transfer forms.
- Customers unable to provide acceptable collateral, to provide ATIA Insurance against default.
- Above Kes 5M, fully secured by legal charge.
Account Relationship
Minimum 3 months account relationship. Supported by 6 months account statement for multi-banked customers.
