Co-operative Bank in the fore-front of offering Trade Finance solution to MSMEs

Financial institutions play a pivotal role in assisting businesses navigate the post-pandemic era, new challenges such as global economic headwinds, supply chain disruption and increased requirements to align with Environmental, Social and Governance (ESG).

The Trade Finance suite of products is uniquely positioned to add value and manage these challenges through traditional solutions and new innovative solutions, bolstered by digitisation and the evolving technology landscape.

Co-operative Bank provide an array of Trade Finance services that enable importers and exporters to conduct international transactions that facilitate the movement of goods and services from one point to another, both locally and internationally.

“With our wealth of knowledge in trade finance, an experienced team and an unparalleled drive to see you succeed in whichever stage your business is at, we offer you the best solutions to ensure your business keeps winning!” says the lender.

LPO Financing

This is financing offered to suppliers with LPOs from reputable companies, to enable them to execute their customers’ orders when they do not have the required funds.

Maximum loan – 60 per cent of the value of the LPO less all of the bank’s charges

Minimum loan – Sh50,000

Tenor- Up to 6 months

Structured Trade and Commodity Finance

If you need a hand in bulk purchasing of goods, we can finance your business so that you execute bigger deals, and take advantage of economies of scale to make higher profit margins.

Bank Guarantees

This is a written, irreversible guarantee from us, assuring your supplier, customer or beneficiary, of payment in the case that you do not fulfill your contractual obligation. This covers bid/tender bonds, performance bonds, advance payment bonds and credit guarantees. These reassure the beneficiary of payment and reduce the level of risk involved in the business transaction.

Invoice Discounting

Cash flow is vital for the survival and smooth running of any business, especially SMEs. With Co-op Bank’s Invoice Discounting, you can withdraw money against sales invoices before payments are done, thus enabling you to improve your business’ working capital and cash flow.

Maximum loan – 80 per cent of the value of invoice less all of the bank’s charges

Minimum loan – Sh50,000

Maximum tenor – 2 months subject to the invoice period

Availability – Facility will revolve for 12 months upon which supplier will be reviewed for renewal

Letters Of Credit.

Business always has an element of risk; especially when it comes to trade. With a Letter of Credit from Co-op Bank, you can assure a beneficiary of payment once the terms of a contract are fulfilled, thereby eliminating risk and setting the beneficiary’s mind at ease.

Pre-shipment Financing

These include pre-export finance and import finance loans which are available to both importers and exporters on a short to long term basis.

Import Finance Facility

This facility is available to importers who have receivables from identified and confirmed off takers in the same currency as the facility.

Post Import Finance Facility

This is best suited for importers who are experiencing a mismatch between payment for imports and the receivables. After goods have been shipped to the importer, the bank pays the shipper on behalf of the customer and books a short-term facility to be paid off with the receivables once the goods have been sold.

Bills Discounting

With Bill Discounting, we provide exporters with an advance to ensure they remain liquid as they continue with their business.

Bills Avalization

This is where the bank confirms that the customer will honor a certain future payment by signing on a bill of exchange on behalf of its customer.

Stock Financing

This facilitates importation of raw materials under letters of credit and guarantees. It enables the customer to increase his business value, efficiency and productivity.