Family Bank is hands-on and close to SME needs. With over 90 branches countrywide, the lender is keen on supporting Kenya’s economic sectors through its trade finance solutions.
Family Bank’s expertise in growing businesses has seen it roll out innovative, friendly and cost-effective ways of doing business away from the traditional channels and Trade Finance is a sure winner for the lender as well as its customers.
Here are some of Family Bank’s offerings:
Local Purchase Order (LPO) Financing…
Family Bank’s Local purchase order financing offers short-term financing to facilitate contractors/suppliers short-term working capital needs, enabling suppliers meet their orders with ease and on time. With a grace period of up to 180 days and a repayment period of up to 12 months renewable, customers can access amounts between KES 50,000 to KES 1,000,000. An exciting feature of the LPO financing is the Insurance cover against death and permanent disability.
Benefits of the LPO financing include flexible security requirements,
financing of up to 75% and competitive interest rates are charged.
Invoice/Certificate Discounting…
Family Bank provides a short-term facility through purchasing invoices, bills of exchange or promissory notes from contractors/suppliers with a maximum tenor of 120 days, availing the funds in advance of the credit period with the buyers. The bank typically does the discounting with recourse to the supplier financing up to 80% of the amount of the invoice.
For Invoice Discounting, customers are required to avail Discounting facility or payment guarantee in favour of the bank, a Customer’s letter of request as well as Invoices and/or bills of exchange and/or certificates of work done.
Import Duty Financing…
Family Bank now offers Import duty financing; which is a short-term facility available to importers for a maximum duration of 180 days, catering for port charges and custom duty, thus avoiding storage and demurrage charges.
This offering features a minimum amount KES 50,000 and No maximum amount. Moreover, the amount Financed; 100% of correctly calculated Duties and Taxes as per KRA’s guideline.
With import duty financing, Family Bank assists the importer(s) avoid high port, storage and demurrage charges and avoid auction of their property at the port. This can be financed at any Family Bank branch countrywide if the customer is an importer of authorized goods and services in Kenya e.g. raw materials, machinery, electronics, etc, Importers of second-hand motor vehicles (individuals, companies or motor vehicle dealers) and the customer is eligible for Import duty finance facility.
Pre-Shipment Financing…
Pre-shipment finance, also referred to as purchase order finance or packing credit, is working capital finance provided by Family Bank to the exporter/seller prior to shipment or delivery of goods.
This Financing option features Purchase of raw materials and other inputs for manufacturing goods, Assembling of goods, in the case of merchant traders,
Storage of goods in suitable warehouses until they are shipped/delivered,
Payment for packing, marking and labelling of goods, Payment for pre-shipment inspection charges, Importation or purchase of heavy machinery and other capital goods to produce export goods, Payment for consultancy services as well as Payment for documentation expenses.
To qualify for pre shipment financing, one needs a Pre-shipment/delivery finance facility or cash margin, a Customer’s letter of request and a Purchase order.
The main benefit of the pre-shipment financing is that it is 100% secured with cash or conventional collateral.
Structured Trade Financing…
Family Bank’s structured trade finance is offered to cater for fast-moving goods, such as rice or grains, or assets such as machinery and equipment, using underlying cash flows, without the need for traditional collateral.
With Structured financing, goods are entrusted in the custody of a collateral manager.
The customer contributes part of the cost as commitment with the Bank financing the balance. The goods are then released to the customer piecemeal upon sale and sight of funds in the account with the Bank. The customer however, meets the cost of collateral management.
For this, the customer is required to have a structured trade finance facility or cash margin, a Customer’s letter of request and required documents which are transaction specific.
Post-Import Financing…
Post-import financing is a short-term credit facility available to importers for the purpose of settling bills of exchange that have matured and remain outstanding. Post-import financing enables you to pay bills on time and create room to generate receivables and also to get assistance in negotiating better credit terms with your suppliers
Post import financing enables a customer Pay bills as they fall due instead of debiting the current account. It is also Ideal to use when your account is not in credit balance as the fees charged are usually lower than an overdraft.
To qualify for post Import Financing, you must be eligible for a PIF facility or cash margin, hold a Customer’s letter of request and Supplier’s invoice(s).
