Cooperative Bank of Kenya can provide a trader or enterprise funds to restock his or her business in order for the business not to stop due to lack of stock. Under the Biashara isimame kwa lack of stock loan, one can borrow money up to Ksh10 million repayable in one year.
According to the bank, one can get a loan of up to Ksh 10 million in just two hours to buy stock for his or her business with Co -operative Banks Stock financing.
“For traders who need a loan to buy stock for their business e.g. hardware, building and construction, agrochemicals, food and beverages, accessories, pharmaceuticals, fuel, LPG and lubricants,” the bank adds.
One can borrow up to 100 per cent of the amounts on the proforma invoice/quotation. The loan is serviced within a maximum of one year. The non-customers, must provide security e.g. land, chattels, cash and motor vehicle and can be partially secured with AGF (African Guarantee Fund) which has 50-75 per cent coverage.
Unsecured loan limits can be given to Coop Bank customers with the following packages: Gold – up to Ksh 10 million, Silver up to Ksh 6 million, and Bronze up to Ksh 0.6 million. These customers can get stock finance without giving security.
However, the existing Co-op Bank customers who have banked with the bank for a period of six months consecutively or have been in business for at least three years can get the loan.
Nevertheless, new customers after approval of finance, must open an account at Cooperative Bank, present bank statements from their current bankers, must have been in business for at least three years and must take up one of the banks collections solutions either Co-op Till Lipa na Mpesa or Collection.
They also need to provide security such as land, chattels, cash, and motor vehicles and can be partially secured with AGF (African Guarantee Fund) which has 50-75 per cent coverage.
