The bank is targeting about 2.3 million SMEs across the country as only an estimated nine percent of this group have access to credit facilities/FILE
The bank is targeting about 2.3 million SMEs across the country as only an estimated nine percent of this group have access to credit facilities.
Chase Bank Kenya General Manager SME and Islamic Banking Iman Hussein says according to the International Finance Corporation in Kenya, Micro, Small and Medium Enterprises (MSMEs) experience an annual credit gap of over US$6 billion.
This impacts a company’s ability to access finance and to compete with international companies.
She says the deal will see Chase Bank offer it’s new and existing customers a broader range of trade finance products with specific focus on invoice discounting.
These products will support companies by providing them with credit that will help to maintain their business as they wait for their customers to pay.
The product will allow the individual or enterprises bridge the gap between the delivery of goods or services and the receipt of payment because it releases working capital.
“This partnership helps us support our customers by providing a solution that is accessible and that allows them to free up funds for their operational activities,” she said.
This product is targeting suppliers of goods and services to reputable private and government institutions trading either as individuals, sole proprietors or limited liability companies.
Other special features about this offering are a highly favourable interest rate, quick turnaround time on facility processing, and a negotiated loan security structure.
The cover with the bank supports more bank facilities including letters of credit, short term loans and bonds, in addition to the invoice discounting.
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