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Trade Finance

Don’t miss your opportunity to trade locally or globally due to finances

Trade Finance
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CO-OP BANK TRADE FINANCE

Trade finance products

Trade finance at Co-operative Bank of Kenya is tailored to facilitate your local and cross-border trade efficiently by mitigating commercial risks and offering liquidity to your business. Our blend of robust and unique trade solutions is crafted to meet your specific needs in time, helping you move forward with confidence and grow your business with ease.

Bank Guarantees

Smiling contractor at a construction site

Whether you are a contractor, a trader, or a businessperson in need of support in your contracts, our bank guarantees are carefully curated for you. We issue both local and international guarantees to ensure the commitments with your counterparties are secure.

Some of the common standard guarantees on offer include:

  • Unsecured Bid/ Tender Guarantees
  • Performance Guarantees
  • Advanced Payment Guarantees
  • Payment/ Financial Guarantees
  • Customs Guarantees
  • Immigration Guarantees
  • Retention Monies Guarantees
  • Shipping Guarantees

Stock Finance Loans

Warehouse worker checking stock

Stock financing is a trade solution that enables local traders to acquire stock for the business to ensure smooth and timely replenishment of stock without affecting the business cash-flow.

Product Benefits

  1. Flexible and available to a vast range of suppliers against invoices
  2. Easy access and fast approvals to cater for the unexpected stock-outs
  3. Improved cash flows to maintain smooth operations without cash flow interruptions

Product Feature

  1. Based on customer’s banking with Co-op Bank with higher limits for higher banking.
  2. Flexible tenors of up to 90 days based on the sector
  3. Flexible collateral considerations

Distributor Finance Loans

This trade facility supports the distributors of certain pre-approved anchor corporates enabling efficient acquisition of stock for distribution without affecting the business cash-flow.

Product Benefits

  1. Available to distributors of a variety of pre-approved anchor corporates.
  2. Easy access and fast approvals to cater for additional stock and multiple drawdowns.
  3. Reasonably lower rates to ensure your margins remain unaffected.

Product Feature

  1. Higher limits based on the average monthly turnovers with the anchor.
  2. Financing of up to 100% of the invoice amount
  3. Flexible tenors of up to 90 days based on the sector
  4. Flexible collateral consideration as per bank’s MSMEs package account

Import and Export Trade Facilities

If you are an importer or a trader and you need a bank that understands and supports you in your importation adventure, or an exporter in need of a bank that advises or confirms your LCs and finances you, then Co-operative Bank is the place for you.

Letters Of Credit.

Logistics officer at a container yard

In a volatile global landscape, our letters of credit are designed to mitigate your payment and performance risk from your counterparties, ease the logistical complexities, and give you peace of mind. You will benefit from our vast network of correspondent banks, flexible solutions in freely convertible currencies, and expertise to help you structure and accelerate your financing needs.

The various forms of Letters of Credit and the related facilities we have on offer include:

  • Import letters of Credit

We help you issue carefully crafted LCs to your exporter anywhere in the world based on your transaction ensuring the ordered goods are shipped in the right quality and quantity. We also offer you marine insurance at reasonable quotes to cover you against logistical risks.

  • Post Import Finance

In addition to import LCs, we also provide bridging post-import finance to defray the LCs at maturity and give you ample time to mobilize funds and settle the loan. The facility can be repaid on instalment basis or as a bullet payment from business proceeds.

  • Export Letters of Credit

We help you by advising the LCs from your buyers while accelerating your export process. In addition, we confirm export LCs from acceptable banks to ensure your payment risk is mitigated.

  • Financing against Export Letters of Credit

We also discount your export LCs both on recourse and non-recourse basis to ensure your shipping and export costs are covered and your business cash-flow needs are met in a timely manner.

Supplier Finance

We provide short-term financing to the importers or traders to pay directly to their suppliers or exporters for the raw materials or end products for onward sale. The facility is repaid in a bullet payment tied to sales proceeds or business cash cycle.

Pre-shipment Finance

We provide short-term financing to exporters or traders to cover the production, packaging, inspection, shipment, and any other logistical costs for their products. The facility is repaid in a bullet payment tied to the export proceeds.

Import Collections and Avalized Bills

We provide document handling for importer collections and avalize import bills to your exporter at reasonable rates. We also provide short-term finance to allow sufficient period to convert.

Export Collections and Avalized Bills Discounting

We provide export collections for exporters and finance against avalized bills efficiently and at reasonable rates.

LPO Finance

For suppliers and contractors in need of short-term financing for orders from known and reputable counterparties, we have LPO facilities crafted just for you. Our LPO financing offers you liquidity to cover your procurement and supply costs and flexible terms tailored within the transaction timelines.

The LPO Finance Features

  • Maximum limits of up to 60% of the LPO value less the bank charges
  • Minimum loan of KES 50,000
  • Maximum tenor – 6 months

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 draw money against sales invoices of known counterparties before payment is made, thus enabling you unlock vital cash-flows to your business.

Invoice Discounting Features

  • Higher maximum limits of up to 80% of the invoice value less the bank charges
  • Minimum loan of KES 50,000
  • Maximum tenor – 2 months subject to invoice period

Trade Finance Application Requirements

  1. Active account holder with the bank although consideration is also given to new clients with existing relationships with other banks
  2. KYC documents such as memorandum and articles of association, CR12, certificate of incorporation, Company Profile, ID Copies for the directors, KRA PIN certificates for the company and directors.
  3. Current tax compliance certificate
  4. Latest 3-year financial statements, management accounts if required, and statements with other banks
  5. Details of other sources of income for repayment
  6. Resolution to borrow accompanied by duly filled trade facility application form

Benefits of Co-op Bank’s Trade Finance Facilities

  1. Short-term – ensures facility costs don’t eat into the business bottom lines due to longevity of tenor. 
  2. Bespoke products – designed for the purpose and uniquely tailored to meet your business needs.
  3. Self-liquidating – ensures the facility repayments are tied to respective proceeds from sale or business cash conversion cycle.
  4. Flexible and reasonably priced facilities to ease your banking expense and give you comfort.
  5. Bank’s trade finance expertise – our trade finance resources are available to offer you expert advice and guidance without additional costs.

Download Our Application Forms

Talk to us today and learn more about any of our trade finance products. Please Click Here and we will be in touch.

Please download the tariff guide by clicking this link

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